Shiba Inu (SHIB) opened June on a bearish note after a descending triangle pattern that had been forming since February finally broke to the downside. The horizontal support zone between $0.0000054 and $0.0000055, which had held price through March, April, and May, gave way, leaving the next significant support at the February base around $0.0000050. SHIB traded at $0.00000546 on June 2, with all daily exponential moving averages pressing down from above, reinforcing the downtrend.
The breakdown coincides with a dramatic collapse in SHIB burn activity. Over the past week, the 7-day burn rate dropped 53.70%, and daily burns have dwindled to near zero. After peaking at 7 million SHIB on May 27, the burn rate has effectively stalled. According to Shibburn, only about $10 worth of tokens (roughly 20 million SHIB) have been burned daily in the last week, while the 30-day total is less than $1,000 (around 144 million SHIB) – a negligible amount compared to the remaining circulating supply of 585.56 trillion tokens. Participation has also plummeted to just 3–5 burn transactions per day, a sharp decline from the tens or hundreds seen earlier in the initiative's history.
Meanwhile, derivatives data shows futures volume on SHIB jumped 89.76% to $108.70 million, but open interest fell 4.01%, confirming that the volume spike was driven by position closures rather than fresh buying interest. The combination of technical breakdown, vanishing burns, and bearish market sentiment leaves SHIB vulnerable to further losses. The token is already down 93% from its 2021 all-time high and, despite a $3.1 billion market cap, faces an uphill battle to reverse the downtrend without a revival of community-driven token burns.
