Shiba Inu (SHIB), a well-known memecoin featuring a dog mascot, has caught the attention of the cryptocurrency market recently. The excitement is primarily due to a significant rise in the token burn rate. Shibburn, a platform tracking SHIB token burns, reported a remarkable 16,600% increase in the burn rate today. Despite this, SHIB's price has been falling, yet the impressive burn rate has led to speculation about a possible price rebound.

Burn Rate Boost Captivates Altcoin Enthusiasts

The Shiba Inu community has taken decisive action by burning $21.5 million worth of SHIB tokens. This large burn, which reduces the number of SHIB tokens in circulation, has excited traders and investors since it could boost the token's value. Shibburn noted a 16,593% increase in the burn rate over the past 24 hours, with the community collectively burning 21.5 million SHIB in multiple transactions. One notable contribution came from a wallet starting with 0x498…, which transferred 21.31 million SHIB to a dead wallet in a single transaction. Along with other burns from community members, the total number of burned SHIB tokens has reached 410.72 trillion. This significant reduction in supply could lead to a price increase if demand stays the same or grows.

Price Declines Despite Increased Token Burns

Despite the significant token burns, SHIB's price has dropped below the critical support level of $0.000024, moving further away from the key resistance level at $0.000025. As of now, SHIB's price has decreased by 3.30% in the last 24 hours to $0.00002392, with a market cap of $14.09 billion. Interestingly, SHIB's trading volume has risen by 42.35% in the last 24 hours, reaching $659.67 million.

Although the rising burn rate has brought optimism to the market, a notable price recovery for SHIB depends on surpassing the $0.000025 mark. If SHIB can break this level, it might reach $0.000030 or even $0.000050. Additionally, if the bullish trend continues, Shiba Inu could hit the much-anticipated $0.0001 target.

However, data from derivatives paints a different picture. According to Coinglass, open interest in Shiba Inu futures has dropped by 13.95% to $89.77 million, indicating less interest from derivative traders. Moreover, while long liquidations have increased by about $1 million, there have been no significant short liquidations, suggesting potential further declines due to continued selling.

In conclusion, while the dramatic increase in SHIB token burns has excited the market and sparked hope for a price rebound, the actual price movement remains downward. The future of SHIB's price depends on its ability to break key resistance levels and sustain bullish momentum amidst mixed signals from the derivatives market.