SHIB weekly burn rate jumps 491% as price slips to multi-month lows amid liquidations
Shiba Inu (SHIB) burn data shows a sharp reversal in supply-reduction activity: the weekly SHIB burn rate jumped 491% to about 37.52 million SHIB burned in the past seven days. However, the SHIB price still weakened as selling pressure and broader risk-off sentiment dominated.
SHIB slid from the ~$0.0000056 area seen on June 1 to around $0.0000044 in early Saturday trading. After losing that support, liquidation activity increased, pushing SHIB further lower. At the time of writing, SHIB was down about 1.37% over 24 hours to roughly $0.0000045.
Derivatives positioned defensively. SHIB open interest is near cycle lows, indicating traders are cautious and reducing exposure. In the broader market, long-heavy liquidations were reported, forcing traders out as the sell-off accelerated. While some exchange outflow signals have been cited as potential accumulation, analysts caution this is not confirmation of a sustained rebound.
Technically, SHIB remains below key moving averages across timeframes, with a lower-high and lower-low structure. Momentum indicators are nearing oversold levels, but traders will likely need buyers to reclaim prior support before expecting trend change.
Key trading takeaway: the SHIB burn rate spike may improve sentiment, but current liquidation-driven downside suggests the market is still prioritizing risk control over supply-reduction narratives.
Bearish
Even though SHIB’s weekly burn rate jumped 491% (a positive supply-reduction headline), both summaries emphasize that price action remains pressured by liquidation-driven selling and a defensive derivatives posture. Long-heavy liquidations and SHIB trading below key moving averages suggest downside risk is still active in the short term. In the longer term, the burn may help sentiment, but without buyers reclaiming lost support and with open interest near cycle lows, traders are likely to expect volatility to persist rather than a durable rebound.