Shiba Inu's Burn Rate Surges 1900% But Price Drops 3.90%

Shiba Inu's burn rate has surged by over 1900% in the past 24 hours, with over 13.5 million SHIB tokens removed from circulation. This significant increase in the burn rate, however, has not translated into a corresponding rise in the SHIB price, which continues to exhibit signs of weakness. The broader market's bearish reversal and increased pressure on meme coins like SHIB have contributed to this lack of price response.

Despite the substantial burn rate, the seven-day burn rate has decreased by nearly 20%, with just over 552 million tokens burned. This decline suggests a reduction in long-term momentum for token destruction, which could limit any sustained bullish impact on the SHIB price. The SHIB price dipped to $0.00001135, and the memecoin experienced a 24-hour loss of over 3.90%, with its market capitalization also dropping by a similar margin to $6.66 billion. This indicates ongoing investor caution and the inability of the burn rate surge to counteract the bearish market pressure.

Technical indicators for Shiba Inu also point to a downtrend. The price remains trapped in a descending triangle pattern, characterized by consistent lower highs against a strong support level of around $0.0000111. If SHIB breaks below this support, analysts warn of a potential 50% price drop to a new low of $0.0000054. The Relative Strength Index (RSI) remains below 40, indicating ongoing selling pressure, while the 50-day Simple Moving Average (SMA) stands at $0.0000169, far above the current SHIB level. The Moving Value to Realized Value (MVRV) has also flashed a death cross, suggesting that many short-term holders are now sitting on losses. These technical signals underscore a possible continuation of the downtrend despite short bursts of positive news, such as burn surges.

Macro sentiment in the crypto space also appears to be working against Shiba Inu. Meme coins have been among the hardest hit in the recent downturn, as investors shift toward more stable assets. Activity on Shibarium, Shiba Inu’s Layer 2 network, has slowed sharply, with Total Value Locked (TVL) dropping from a May high of $3.14 million to just $1.89 million, a nearly 50% decrease in six weeks. This suggests waning interest in SHIB’s broader ecosystem, which could affect its long-term outlook. Although the burn rate may grab headlines, it has not yet translated into meaningful gains. With strong resistance from technicals and weak on-chain fundamentals, the price remains under pressure. For now, SHIB investors may need to temper their expectations until stronger recovery signals appear.