SHIB burns $5 in 24 hours as price drops 2.15%

Weekly burn activity remains sluggish

Over the past week, a total of 15.15 million SHIB tokens have been removed from circulation. This equaled a market valuation of about $75. The weekly burn rate climbed 14.07%. Despite the uptick in percentage rates, the absolute figure stayed low, indicating that burning activity does not have a notable effect on SHIB prices at current levels.

Glossary: Shibburn is a tracking platform used by the Shiba Inu community to monitor token burn transactions. Token burning means sending tokens to unrecoverable wallets to reduce the circulating supply.

According to Shibburn, 1.02 million SHIB were burned in the past 24 hours, equivalent to roughly $5.

The sluggish market conditions have coincided with weak burn figures. The crypto fear and greed index, which reflects investor sentiment, continues to register in the fear zone. This week saw both crypto assets and general risk appetite come under pressure, mirroring broader market caution.

Macro factors weigh down price action

SHIB’s price retreated by 2.15% in the last 24 hours, falling to $0.000004844. The downward pressure has been attributed to the U.S. Federal Reserve signaling a more restrictive path for interest rates. Meanwhile, investor focus has shifted toward IPOs and artificial intelligence stocks, exacerbating the crypto market’s weakness.

According to Coinglass data, crypto exchanges saw over $413 million in liquidated futures positions in the past 24 hours. Most of these liquidations originated from long positions hoping for a rebound. This pattern suggests investors were anticipating a short-term recovery after the Federal Reserve’s latest rate decision, but market reality did not meet those expectations.

The U.S. Federal Reserve left its key rate steady at the 3.5% to 3.75% range, as anticipated, but updated projections flagged higher inflation and a slower path for future rate cuts.

Analysts expect sideways movement to continue

SHIB’s recent price behavior suggests a consolidation phase, rather than a sharp decline. The asset has traded between the $0.000004 and $0.0000051 range recently. Analysts believe this trading band is likely to persist unless a significant catalyst emerges to shift momentum.

Taking into account the low burn volumes, generally weak sentiment, and macroeconomic headwinds, market watchers anticipate SHIB could remain rangebound in the short term as traders seek direction.