Shiba Inu (SHIB), the second-largest meme coin by market cap, is making headlines again as its price claws back 6.55% to $0.00001377 after a steep 10% plunge late last week. The recovery follows a brutal February that saw 389,189,413 SHIB tokens burned across 134 transactions, according to Shibburn, the official tracking platform. This aggressive reduction in supply—valued at roughly $5.36 million at current prices—has sparked cautious optimism among traders, though questions linger about its impact on SHIB’s trajectory.
The 10% crash, which saw SHIB fall from $0.00001475 on Friday, February 28, came amid broader market jitters tied to Bitcoin’s reaction to U.S. trade tariffs set to take effect March 4 against Canada, Mexico, and China. The meme coin hit a low of $0.00001302 before rebounding over the past 24 hours, buoyed by a crypto market uptick that pushed Bitcoin above $85,000. The burn of 389 million tokens in February—part of a long-term effort that’s removed 410 trillion SHIB from an initial 999.9 trillion supply—aims to create scarcity and bolster value, but the community remains divided on its effectiveness.
The rebound aligns with technical signals: SHIB’s 20-day EMA sits at $0.00001350, just below its current price, while the RSI at 45 indicates neutral momentum with room to grow. Support at $0.000012 held firm during the crash, but resistance looms at $0.000015. Analysts warn that without sustained buying pressure, the FTX estate’s remaining 2 million SHIB ($27.5 million) could cap gains if sold off.
I’ve tracked SHIB since its 2020 debut, when burns were a novelty and its price was a fraction of a cent. This latest move feels like a familiar dance—community-driven burns stoking hope, followed by market reality checks. Elon Musk’s recent quip on Joe Rogan’s podcast, likening meme coins to “a casino,” adds a sobering note. He cautioned against betting big, a sentiment that resonates as SHIB’s volatility persists.
For now, SHIB’s 6% recovery offers breathing room after February’s 389 million token burn. Yet with a market cap of $8.1 billion and bearish pressures lingering, the road ahead remains uncertain. Traders will watch if this momentum holds—or if another dip awaits.
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