Shiba Inu (SHIB) has experienced a notable decline in price, dropping by 5.9% over the past week and 2.2% in the last 24 hours, currently trading at $0.00001682. Despite recent significant SHIB token burns, which typically have a positive effect on price, the decrease raises concerns about the underlying factors influencing SHIB's current market performance.

SHIB’s Price Challenges Amid Positive Developments

Despite positive developments, SHIB is facing strong selling pressure on various exchanges. The altcoin has seen a 30% drop in value over the last month, sparking worries among investors regarding its recovery prospects. SHIB's price is currently below both the 50-day and 200-day simple moving averages, indicating a bearish trend. Notably, SHIB experienced a 20% decline after breaking out of a descending triangle formation on June 13.

However, there are signs of hope as SHIB has found temporary support around $0.00001688. The 14-day Relative Strength Index (RSI) for SHIB stands at 32, close to the oversold region but above its moving average, signaling a positive outlook. Coupled with the existing support level, this suggests a potential bullish breakout if the upward momentum persists.

Moreover, the total Open Interest (OI) for SHIB decreased by 0.67% in the last 24 hours, indicating a potential shift of funds to other assets. Nevertheless, data from Coinalyze reveals that most SHIB investors maintain long positions, demonstrating confidence in a potential price rebound. If the current support level holds, SHIB could see a 28% increase to $0.00002129, although this level may also act as a temporary resistance.

Remarkable Surge in SHIB Token Burns

A noteworthy development is the 8,586% surge in SHIB burn rate within the last 24 hours. The total amount of SHIB burned has reached 410.72 trillion, with 589.27 trillion staked in circulation. While SHIB's circulating supply presents a challenge, the meme coin increasing popularity has encouraged more protocols to participate in SHIB token burns.

The deliberate burning of SHIB underscores the project's flexibility and dedication to long-term value creation. This strategy could pave the way for an upward trajectory in the altcoin's price movement despite the prevailing bearish trend. As more protocols engage in the token burn initiative, reducing the circulating supply, demand may rise, potentially benefiting SHIB's market performance.