The dog-themed cryptocurrency Shiba Inu (SHIB) has recently undergone a remarkable surge in token burns, witnessing a staggering 192% increase in the past 24 hours alone. This surge in token burns has resulted in the removal of millions of SHIB tokens from circulation, as the Shiba Inu community actively participates in the initiative to create scarcity within the token ecosystem.

According to data from the Shibburn X account, a total of 4,796,486 SHIB tokens were burned within the last 24 hours, marking a remarkable 207.81% increase in the burn rate. This significant spike in token burns comes at a pivotal moment when market observers eagerly anticipate potential price movements amidst subdued trading activities in major cryptocurrencies, including SHIB.

The subdued action in Bitcoin this week, maintaining a range between $67,000 and $69,000, has coincided with challenges for various risk assets, including U.S. stocks. Similarly, Shiba Inu has encountered profit-taking pressure, entering its fourth consecutive day of declines following an impressive surge earlier in the week.

After experiencing three consecutive days of gains, Shiba Inu soared by as much as 20%, reaching highs of $0.0000294 on May 29th. However, the token is now undergoing a phase of profit-taking as investors capitalize on their gains. Presently, SHIB is down by 2.18% in the last 24 hours, trading at $0.00002473. This decline aligns with the broader market trend, with many cryptocurrencies experiencing downward movements.

The market's response to the ongoing profit-taking phase will likely play a crucial role in determining SHIB's short-term price trajectory. Should buying pressure absorb the selling pressure, SHIB's price may stabilize or even continue its upward momentum. Conversely, if profit-taking leads to sustained selling, it could potentially test support levels for the SHIB price. In such a scenario, maintaining Shiba Inu above the daily Simple Moving Average (SMA) 50 at $0.00002454 becomes critical in preserving SHIB's upward momentum and mitigating further losses.