Shiba Inu (SHIB) is firmly on an upward trajectory, breaking out from weeks of indecision. The overall crypto investor sentiment’s shift to the positive side prompted the rally of SHIB. Institutional and retail traders now monitor it intensely. Trading volumes have increased, indicating increased confidence regarding the future of the token.
Now, SHIB is trading at $0.00001415, a 1.37% rise within the last 24 hours. The volume increased more than 21%, to reach $313 million. The price increased by 16.21% within the last week and indicates high momentum. This indicates that Shiba Inu may hold on to its gains if the trend continues to remain positive.
Shiba Inu’s huge token supply explained
Shiba Inu’s dream of hitting $1 per token without a $600 trillion market cap hinges on burning nearly all its supply. The token’s total supply stands at a staggering 589.5 trillion. To maintain a reasonable market cap at $1, almost 99.9987% of SHIB must be burned.
If that happens, only 7.77 billion tokens would remain in circulation. This would keep the market cap around $7.77 billion, a figure far more realistic than $600 trillion. However, burning that much supply poses a massive challenge.
Shiba Inu burns 15.64 billion tokens every month
The community burns roughly 15.64 billion SHIB monthly, according to Shibburn data. At this rate, it would take over 3,000 years to burn 99.9987% of the supply. This timeline makes the $1 target look like a distant dream, at least through burning alone.
In the meantime, SHIB also encounters another hurdle. There are more than 22.7 trillion tokens just above today’s price, and these are being held by approximately 49,000 accounts. They purchase at higher prices and can sell at their break-even levels. This amounts to huge resistance at $0.000014, just above today’s level.
This resistance block may halt SHIB’s upsurge unless buyers are resolute. The market now holds its breath to determine if Shiba Inu will break free or undergo a retracement. The coming days will tell us if it is a breakout or yet another pause in the rollercoaster ride of SHIB.
