Shiba Inu Struggles at Key Resistance Amid Low Volume and Token Burn Surge

Shiba Inu (SHIB) is facing a critical juncture as it attempts to recover from recent declines, but technical indicators and market dynamics suggest a challenging path ahead. The price is currently trading around $0.0000090, positioned directly beneath a cluster of declining moving averages, including the 20-EMA, 50-EMA, and 100-EMA, all sloping downward, indicating a persistent bearish trend. Resistance levels between $0.0000095 and $0.0000100 have repeatedly rejected SHIB over the past three months, and the lack of significant trading volume is undermining breakout potential. Volume has been weaker in recent sessions compared to earlier attempts this year, signaling a lack of conviction and buying pressure.

On a more optimistic note, token burn activity has surged dramatically, with a nearly 2,000% jump reported recently, leading to 4.14 million SHIB tokens removed from circulation in one day alone. This includes a single user burning 2.14 million tokens and another incinerating $1.97 million worth, contributing to reduced circulating supply. Additionally, exchange reserves have fallen to 285 million tokens, down from 295 million in August, suggesting holders are not selling during price dips, which could tighten supply and support upward momentum if demand increases.

Technically, SHIB is forming a descending triangle pattern with critical support at $0.0000085; a break below this level could trigger further losses toward $0.0000050, while moving above $0.000010 might reverse bearish sentiment. The Shibarium network has shown improvements, with total value locked increasing by 124% in 30 days to over $1.8 million following a recent exploit, potentially boosting network credibility. However, the overall momentum profile, including a slight RSI increase from oversold conditions, does not indicate a trend change, and investors should watch for volume spikes or reclaimed EMAs for genuine bullish signals.