Sometimes its psychological in my opinion. People thinks that when supply become shorts its become valuable. But in the essence of law of supply and demand thats true. But it depends on the tokenomics of the project. Apparently it could be a bluff but others work on it like literally pumping when there is a news.
The law of supply and demand will always be right, it will not deviate from those two things. Burning tokens that are carried out also aims to reduce the supply of tokens which results in price increases because everyone will say the supply is decreasing and getting less. this is a marketing trick to increase the positive token price, where the circulating supply decreases. The Shiba Inu are a true example of the crazy rise when it comes to Burning their tokens. But it also depends on how the community is owned, if the community is solid and continues to be active then it can develop, but the community is small and not solid, it will only end up being abandoned.