Shiba Inu (SHIB) has broken below a critical technical support level, threatening a significant price correction of over 14%. The meme coin closed below its 20-day moving average, a level that had served as a bullish anchor throughout January, effectively flipping it from support to resistance. This breakdown opens a path toward the lower Bollinger Band at $0.00000718. With SHIB trading around $0.00000840 to $0.00000857, this represents a potential decline of 14.36% if historical patterns hold.
The reversal marks a collapse in the token's technical structure, which had shown promise earlier in the month following a golden cross between its 23-day and 50-day moving averages. Instead of extending gains from its January 4 peak of $0.00000965, SHIB entered a period of consolidation that has now given way to downward pressure. Momentum indicators and volume patterns confirm weakening demand, with selling activity picking up and a notable absence of support bids around current levels.
Despite this bearish technical outlook, the Shiba Inu community intensified its deflationary efforts. In a 24-hour period, the burn rate surged over 910%, with 4.36 million SHIB tokens sent to dead wallets. This initiative aims to boost long-term scarcity, reducing the total supply to 589.24 trillion tokens, with 585.40 trillion actively circulating and an additional 3.83 trillion staked or locked.
However, these substantial burns failed to counteract the selling pressure or lift the price above the crucial psychological barrier of $0.00001. Trading volume remained active at $179.96 million, indicating strong market participation, but the token's inability to reclaim key resistance levels suggests that broader market sentiment and macro conditions are currently outweighing deflationary mechanics. The price action underscores that while community efforts like burning and staking support long-term scarcity, they cannot alone overcome immediate market-wide trends and trader psychology.
