Shiba Inu Under Bearish Siege: Burn Rate Drops 80%, Four EMAs Signal Downtrend

2 hour ago 3 sources neutral

Key takeaways:

  • SHIB's burn rate collapse signals fading community-driven scarcity efforts, undermining price recovery.
  • Futures outflows amid improving broader sentiment suggest traders are de-risking from SHIB specifically.
  • Bullish reversal hinges on reclaiming $0.000006; failure could trigger stop-loss cascades near $0.0000052.

Shiba Inu (SHIB) is under heavy bearish pressure on May 25, trading at $0.0000056 after a sharp rejection from the $0.00000668 resistance zone. SHIB’s burn rate collapsed 79.96% over the past seven days, erasing the temporary spike seen on May 19, while all four Exponential Moving Averages (EMAs) now stack firmly above price — reinforcing downside momentum.

The daily chart shows price trapped below the 20 EMA ($0.00000592), 50 EMA ($0.00000604), 100 EMA ($0.00000630), and the 200 EMA ($0.00000732), which sits roughly 30% higher than current levels. The Parabolic SAR dot at $0.00000606 also sits above price, confirming the active downtrend. Futures volume rose 20.88%, yet long liquidations reached $90,790 in 24 hours, hinting at forced exits among overleveraged bulls.

Compounding the caution, SHIB futures flow plunged 306%, with outflows ($4.25 million) far exceeding inflows ($3.82 million), resulting in a net withdrawal of $431,100 from derivatives wallets. This exodus suggests traders are reducing leverage, taking profits, or moving capital to cold storage — a sign of waning speculative appetite. On spot markets, SHIB is down 0.4% over the same period, hovering within a range that has held since mid-May. After bouncing from Sunday’s low of $0.00000549, bulls will need to reclaim the daily MA 50 at $0.000006 and $0.0000066 to shift momentum; otherwise, support at $0.0000052 and $0.000005 could be retested. Broader sentiment is tentatively improving: the Fear and Greed Index edged up to 40 (neutral) from 39 (fear), though SHIB-specific metrics remain heavily tilted to the downside.

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