Shiba Inu’s token burn activity spiked dramatically this week, with the rate increasing by over 1,500% in the past 24 hours, according to burn tracking data. During this period, more than 34 million SHIB tokens were permanently removed from circulation in an effort to reduce overall supply.

Despite this deflationary action, the price of the meme coin remained under pressure, increasing investor concerns about whether supply adjustments alone can drive recovery during the wider market weakness.

Where Did the SHIB Burns Come From?

The bulk of the token burn came from a single wallet address, “0x541f60e5576,” which eliminated 17.13 million SHIB in one transaction. This pushed the day’s total burn count to over 34.2 million tokens. 

Shiba Inu’s total burn amount now nears 410.73 trillion tokens, while roughly 584.36 trillion are reported to remain in circulation out of an approximate total supply near 589.25 trillion.

Related: Can Shiba Inu Repeat History? SHIB Tests Support That Triggered Past Rallies

Why Isn’t Price Following the Burn Rate?

Although token burning is often seen as a mechanism that could support prices long-term by reducing supply, SHIB’s price trend has not mirrored this sentiment. The token traded at $0.00001102, marking a 2.61% decline within the 24 hours.

Before the latest drop, SHIB briefly touched $0.00001132 before facing renewed selling pressure. By early April 9, it had fallen to a session low near $0.0000102 before managing a slight rebound.

Market activity also showed signs of contraction. Daily trading volume fell by 34.55% to $273 million, indicating reduced engagement from traders. 

Shiba Inu’s market capitalization remained at $6.49 billion, placing it 17th among active cryptocurrencies. The token’s supply structure remains unchanged, with no new SHIB entering circulation beyond the current limit of approximately 589.25 trillion tokens.

Technical Indicators Show Mixed Reaction

Technical indicators presented a mixed view. The Relative Strength Index (RSI) measured 35.14, slightly above the oversold mark of 30. This suggests that the token is nearing a level that may attract buying interest, although the RSI remains below its 14-day average of 41.20, pointing to continued weakness.

Related: Shiba Inu Burn Frenzy: Will This Drive SHIB to $0.01?

Meanwhile, the Moving Average Convergence Divergence (MACD) also signaled caution. The MACD line stood at -0.00000060, while the signal line was slightly higher at -0.00000043. 

The negative histogram confirmed ongoing bearish momentum, though a slight narrowing between the two lines offered a tentative hint of a potential future shift in trend direction.