Shiba Inu price sustains uptrend after 2 billion SHIB tokens burned across July

Shiba Inu (SHIB) price is trading with a bullish bias, sustaining the gains as the price consolidates along an uptrend line. The uptrend comes as the SHIB ecosystem continues to double down on exports to increase its value.

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Shiba Inu price uptrend continues 

Shiba Inu (SHIB) price rose almost 30% in the last month despite the overall gloom in the crypto market, with Bitcoin (BTC) price showing a lack of momentum and consolidating horizontally. While the surge in SHIB market value can be attributed to the recent Shibarium announcement by Shiba Inu's marketing specialist Lucie Sasnikova, the role of the network's token-burning mechanism cannot be overlooked.

Token burning is a calculated strategy by crypto ecosystems to reduce the number of tokens in supply at any given moment. To do so, the network removes tokens from circulation indefinitely. The goal of the process is to reduce the overall supply of a digital asset while at the same time improving its demand and market value. The strategic move increases the perceived value of the asset in question as it establishes scarcity.

Based on a recent report by Shibburn, the token-burning tracker for the Shiba Inu ecosystem, more than two billion SHIB tokens have been destroyed over the past month. Specifically, the tracker recorded 2,094,566,264 SHIB tokens burned in 412 transactions over July.

The Shiba Inu network is committed to reducing the number of tokens in circulation, hoping that doing so would help increase the value of the meme coin. While the resultant impact may be slow, the actions have a role to play based on the dynamics of economics, stipulating value surge attached to demand as supply diminishes. Over the last 24 hours, almost 15 million SHIB tokens have been burned.

Benefits of token burning

Token burning has two primary benefits, including supporting the token's value and increasing community strength. As regards to the strength of the community, by burning a set number of tokens, crypto firms can encourage miners, transaction validators, and other stakeholders. This will encourage them to hold the asset longer, indicating a longer-term commitment to scarcity, increasing the wealth of the traders.

Shiba Inu price forecast as SHB token burning continues

Shiba Inu price could continue the uptrend as long as the price continues to move above the ascending trendline. The meme coin is currently confronting selling pressure from the 100-day Exponential Moving Average (EMA) at $0.00000839. A flip of this hurdle into support would clear the path for extending the resistance confluence between the horizontal line and the 200-day EMA at $0.00000930. Such a move would constitute a 10% ascension from current levels.

SHIB/USDT 1-day chart

Conversely, if profit-taking continues, Shiba Inu price could fall toward the 50-day EMA at $0.00000794, or worse, break below the uptrend line to interfere with the northbound move. A daily candlestick close below the $0.00000711 level would invalidate the bullish outlook. The Relative Strength Index (RSI) is moving south suggesting falling momentum that could see Shiba Inu price fall.