The burn rate of Shiba Inu has increased by 1900% in the last 24 hours, but this has not boosted investor confidence as the price continues to show weakness.
Surge in Shiba Inu Token Burns
According to data from Shibburn, over 13.5 million SHIB tokens were burnt in the last 24 hours, marking one of the largest spikes in recent weeks. However, this surge occurs amid a broad bearish trend in the market, where meme tokens like SHIB are facing increasing pressure. While the 24-hour burn rate has risen sharply, the weekly burn figures show a different picture, with a nearly 20% decrease as only about 552 million tokens were burnt. This indicates a decline in long-term token destruction momentum, limiting any potential positive impact on SHIB's price.
Technical Indicators Signal Downtrend
Shiba Inu's price remains trapped in a descending triangle pattern, indicating a bearish trend with consistent lower highs against a strong support level. The current support is around $0.0000111, and if SHIB falls below this point, analysts warn that the price could drop to as low as $0.0000054. Technical readings indicate a cautious outlook, with the Relative Strength Index (RSI) remaining below 40, reflecting ongoing selling pressure. The 50-day Simple Moving Average (SMA) stands at $0.0000169, much higher than SHIB's current level.
Overall Market Pressure Affects Shiba Inu
Beyond technical factors, macro sentiment in the crypto space also appears to work against Shiba Inu. Meme coins have been among the hardest hit in recent downturns as investors shift toward more stable assets. SHIB's trading volume stands at around $127 million in 24 hours, reflecting uncertainty rather than confidence. Activity on Shibarium has also sharply slowed, with Total Value Locked (TVL) dropping from a May high of $3.14 million to just $1.89 million, a nearly 50% decrease. This decline suggests waning interest in SHIB's broader ecosystem, which could impact its long-term outlook.
Despite the surge in the burn rate, it has not yet resulted in significant price gains for SHIB. With strong resistance from technicals and weak on-chain fundamentals, the price remains under pressure. Investors may need to adjust their expectations until stronger recovery signals appear.
