Shiba Inu's Uncertain Future: Bearish Trends Threaten Despite Token Burns

Shiba Inu (SHIB) faces an uncertain price environment despite a surge in token burns and critical support levels. The cryptocurrency has been struggling against bearish trends, with a 2532.14% increase in token burns failing to boost its market viability. According to COINOTAG's analysis, ongoing liquidation risks near critical support levels may further exert downward pressure on SHIB's price.

Shiba Inu's recent price action has been concerning, with the token exhibiting a head and shoulders pattern, a technical indicator often associated with potential price declines. Currently fluctuating around $0.0000147, SHIB is at a pivotal point as it tests this crucial support level, showing vulnerability after a recent drop. Traders and investors should keep a vigilant eye on the $0.0000147 threshold, as a failure to maintain this support could trigger further declines, possibly targeting the $0.00001261 level. Conversely, if SHIB manages to uphold this support, there may be a slim chance to rebound and retest the $0.00001718 resistance zone.

On-chain metrics for Shiba Inu paint a stark picture of its current market sentiment, revealing substantial bearish signals. Recent metrics show that the net network growth has only increased by 0.27%, indicating sluggish adoption activity. Further analysis notes a 1.06% decrease in the "in the money" metric, signifying that a notable portion of investors are facing losses. Even though the concentration of large transactions remains low, a 9.95% reduction reveals decreasing interest from institutional investors. This on-chain data hints at the likelihood of continued downward pressure unless a significant shift in market sentiment is realized.

The recent liquidation heatmap for Shiba Inu has highlighted significant risks faced by traders. A substantial volume of liquidations has been observed around the $0.0000145 mark, exacerbating the pressure on the token. This liquidation heatmap indicates zones that may see increased liquidation activity, which could trigger notable price shifts in either direction. If the risk materializes, SHIB could face further declines, as highlighted by current market conditions.

In summary, although the recent burn increase signifies a positive community effort, it is overshadowed by overarching bear