The well-known Shiba Inu (SHIB) meme coin has encountered unforeseen difficulties in its anticipated rebound. This comes as a shock to crypto market participants, who were optimistic about a strong recovery following a recent surge in burning activities.
SHIB encounters difficulties
As of this writing, SHIB is trading at $0.00001659, demonstrating a decrease of 2.9% in the last 24 hours, per data from CoinMarketCap. SHIB has been experiencing a notable drop in its price over the past month.
After reaching a cycle high of $ 0.00004501, SHIB quickly saw a dramatic decline, influencing volatility on the broader crypto market. According to an earlier report by U.Today, SHIB lagged behind its meme coin counterparts, with over 50% of holders recording losses.
Nevertheless, SHIB recently showed signs of a potential recovery in a key metric. As disclosed earlier, the SHIB token burn spiked by an outstanding 8,596.57% within the last 24 hours. Notably, over 17.7 million Shiba Inu tokens were removed from circulation during this time. This surge led many to believe the meme coin was on the verge of a remarkable rebound.
Their sentiments are based on the fact that burn activity creates scarcity for the token. As a result, the price is anticipated to surge if demand remains the same or grows. The positive optimism on SHIB’s price was also fueled by a recent announcement from Shiba Inu executive Lucie. The executive outlined several proactive measures on the ecosystem, including a refreshed visual identity of the SHEB token.
What’s next for SHIB
Despite the current setback, it is essential to note that SHIB has historically demonstrated resilience in the face of adversity.
Past declines have often been followed by substantial recoveries, driven by strategic partnerships, technological advancements and increased adoption.
Surprisingly, SHIB’s 24-hour trading volume increased by 37%, suggesting renewed confidence from investors.