Shiba Inu (Shib) remains locked in a downward trend despite recovering from low night, as the sharp decrease in “daily combustion” speed has bulbed deflation views.
The token has recovered to trading near $ 0.000012650 at the time of writing, after reaching a low level of $ 0.00001234 in the Asian hours. Still, the downward trend identified by trend lines that connect May 12 and May 23, and the low reached May 17th intact.
Shib’s daily combustion rate fell by 63%and threatened to derive progress towards deflation tokenomik, while trading volume increased by 78%. The daily combustion rate refers to the number of Shib -tokens that were permanently destroyed or removed from circulation every day.
Token Burns is widely used to introduce a deflationary appeal to cryptocurrencies. A deflationary token is a cryptocurrency whose supply is designed to fall over time, typically through mechanisms such as token burning.
So the slower combustion speed presents a headwind to Shib. Still signalized data on the chain $ 0.000012 and $ 0.000013 as potential support zones.
Key On-Chain and Technical Insight
- Despite the Bearish trend, data on the chain reveals a significant concentration of tokens contained by investors with a cost basis between $ 0.000012 and $ 0.000013, suggesting that this could be a strong defense price zone where trading in quantities could spike dramatically.
- During the last 24 hours, support emerged around the 0.00001236 level with a strong purchase volume, which suggested accumulation at lower levels.
- Volume spiked dramatically at. 08:02 with over 14.9 billion in trade activity, confirming the bullish momentum that pushed prices to session heights.
- Price stabilization in the last hours indicates potential consolidation before the next directional trait.
