Shiba Inu Burn Rate Rockets 1900% But SHIB Price Risk Remains, Here’s Why

Shiba Inu burn rate has jumped by over 1900% in the past 24 hours, but the SHIB price continues to show signs of weakness.

Despite millions of tokens being removed from circulation, investor sentiment remains shaky. Notably, several indicators point toward a possible further price decline.

Spike in Shiba Inu Burn Rate Fails to Uplift Market Confidence

According to data from Shibburn, the burn rate of Shiba Inu has spiked by 1900% over the past 24 hours.

Over 13.5 million SHIB tokens were burnt, marking one of the largest single-day spikes in recent weeks.

However, this burn comes when the broader market is in a bearish reversal mode, and meme coins like SHIB are facing increased pressure.

While the 24-hour burn rate sharply increased, the seven-day burn rate paints a different picture.

It is worth noting that weekly burn numbers are down nearly 20%, with just over 552 million tokens burned.

If anything, this drop signals reduced long-term momentum in token destruction. It is also a limiting factor on any sustained bullish effect on the SHIB price.

It is important to add that despite the burn effort, SHIB’s price dipped to $0.00001135.

CoinMarketCap data also shows that the memecoin had a staggering 24-hour loss of over 3.90% as of writing.

The market capitalization also dropped by a similar margin to $6.66 billion. This shows the level of ongoing investor caution.

The surge in burn rate did little to counteract bearish pressure from the overall market.

Shiba Inu Coin Technical Indicators Signal Downtrend

It is worth noting that Shiba Inu’s price remains trapped in a descending triangle pattern.

This typically bearish structure shows consistent lower highs against a strong support level.

Notably, the current support sits around $0.0000111. If SHIB breaks below this point, analysts warn that the price could fall as much as 50% to a new low of $0.0000054.

Technical readings support this cautious outlook. The Relative Strength Index (RSI) remains below 40, indicating ongoing selling pressure.

Meanwhile, the 50-day Simple Moving Average (SMA) stands at $0.0000169, far above SHIB’s current level.

This gap suggests that the price would need significant momentum to recover and signal any bullish reversal.

The Moving Value to Realized Value (MVRV) has also flashed a death cross, suggesting that many short-term holders are now sitting on losses.

Additionally, these signals underline a possible continuation of the downtrend despite short bursts of positive news, such as burn surges.

Wider Market Pressure Adds to SHIB’s Struggles

Outside of technical factors, macro sentiment in the crypto space also appears to be working against Shiba Inu coin.

Meme coins have been among the hardest hit in the recent downturn, as investors shift toward more stable assets.

Trading volume for SHIB stands at around $127 million in 24 hours, but that figure reflects uncertainty rather than confidence.

Additionally, activity on Shibarium, Shiba Inu’s Layer 2 network, has slowed sharply.

Total Value Locked (TVL) has dropped 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 Shiba Inu 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.

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