The Shiba Inu (SHIB) burn rate has sharply increased by more than 1900% within the last 24 hours, with over 13.5 million tokens removed from circulation. Despite this aggressive burning effort, the SHIB price continues to show signs of weakness, dropping to around $0.00001135 and experiencing a 3.9% loss in a single day. Market capitalization also fell to approximately $6.66 billion, reflecting ongoing investor caution.
Weekly burn data contrasts the 24-hour spike, revealing a 20% decline in token burns over the past seven days, which signals waning long-term momentum in reducing supply. The price is trapped in a descending triangle pattern, a bearish technical formation, with a critical support level near $0.0000111. Breaching this support could result in a further decline up to 50%, possibly falling to $0.0000054.
Technical indicators such as the Relative Strength Index (RSI) below 40 and the 50-day Simple Moving Average (SMA) significantly above current prices support this cautious outlook. The recent death cross in the Moving Value to Realized Value (MVRV) metric suggests many short-term holders are at a loss, reinforcing downward pressure on price.
Broader market dynamics also dampen bullish prospects for SHIB. Meme coins have been disproportionately affected in the current bearish market as investors gravitate toward more stable assets. Trading volume remains moderate, around $127 million over 24 hours, but reflects uncertainty rather than confidence.
Moreover, activity on Shiba Inu’s Layer 2 network, Shibarium, has declined markedly. Total Value Locked (TVL) on Shibarium decreased by nearly 50% over six weeks, from $3.14 million to $1.89 million, indicating waning ecosystem engagement which may hurt SHIB's long-term outlook.
In sum, while the spike in burn rate grabs headlines, it has so far failed to translate into price gains amid bearish technicals and weak on-chain fundamentals. Shiba Inu investors may need to temper expectations until stronger recovery signals emerge.