Shiba Inu Drops 20% as Death Cross Forms, Burn Rate Surges 12,285.94%

Shiba Inu, a prominent meme cryptocurrency, has recently experienced a significant price decline, dropping over 20% due to the formation of a "death cross" on its charts in June 2025. This technical indicator, which occurs when the short-term moving average crosses below the long-term moving average, has historically signaled a bearish trend. The 50-day moving average falling below the 200-day moving average has intensified the bearish sentiment, leading to further price declines.

The "death cross" pattern has been a dominant factor in the recent market shifts, with no official comments from the lead developers, Ryoshi or Shytoshi Kusama. As of June 21, 2025, there have been no statements on the public Twitter/X or blog accounts regarding the death cross or recent price action. This lack of communication has left investors speculating about the future direction of SHIB. The downtrend aligns with previous instances where such patterns indicated prolonged bearish periods, adding to the uncertainty in the market.

Market impacts are evident, with SHIB trading near $0.0000115. The price drop is influenced by macroeconomic pressures beyond the cryptocurrency's direct control. Broader market conditions and the absence of institutional changes have emphasized the technical downturn, making it challenging for investors to navigate this complicated market phase. The 30-day MVRV (Market Value to Realized Value) indicator has fallen to -132%, which is below the 365-day MVRV, further indicating a potential decline in the price of Shiba Inu.

Despite the bearish signals, there are some positive developments for Shiba Inu. The burn rate of SHIB tokens has seen a staggering increase of 12,285.94% in just one day, with a total of 12,385,936 SHIB tokens permanently removed from circulation. This rapid surge in the burn rate has sparked interest across the crypto ecosystem, as it reflects a remarkable resurgence in demand for the token. The latest removal of millions of SHIB tokens from circulation has brought SHIB’s circulating supply down to 584,525,215,730,881, highlighting the Shiba Inu team’s ongoing commitment to creating scarcity and driving up the value of the leading meme coin.

However, despite the spike in the burn rate, the price of SHIB has not yet responded and continues to trade in the red. Still, holders are optimistic that this resurgence in the burn rate could signal a short-term price recovery. The Shiba Inu community and developers remain strongly committed to managing the token's supply, and token burns are a key part of Shiba Inu’s long-term roadmap. By sending tokens to inaccessible wallets, the team effectively removes them from circulation forever, which can potentially boost demand and turn bullish for the token.

In conclusion, while the formation of a "death cross" on Shiba Inu's charts has led to a price drop, the recent surge in the burn rate of SHIB tokens offers some hope for a potential price recovery. Investors are closely monitoring the situation, and the Shiba Inu team's commitment to creating scarcity in the token's supply could play a crucial role in determining its future price movements. The potential outcomes remain uncertain, with historical data suggesting extended declines. SHIB's bearish sentiment continues with no immediate rebound signals, and investors may face ongoing challenges navigating this complicated market phase.