SHIB Burn Rate Falls 91% as Support Weakens

| coinpaper.com
Shiba Inu (SHIB) burn activity reversed sharply after a brief surge. The daily burn rate initially jumped 1,020%, with about 20.82 million SHIB sent to dead wallets. However, Shibburn data later showed a 91.31% drop on September 28, when only about 338,050 SHIB were removed from circulation, compared with nearly 3.9 million previously. The latest decline came as SHIB retreated from resistance between $0.0000060 and $0.0000062. SHIB rose from below $0.0000050 to above $0.0000060 but failed to hold the breakout, closing near $0.00000566 after reaching about $0.00000598. The $0.0000056 area is a key short-term support, while the 200-day moving average is near $0.0000058. A break below $0.0000055 could expose the $0.0000051-$0.0000052 range. The burn rate is unlikely to drive SHIB’s price directly because daily burns remain tiny relative to its circulating supply of hundreds of trillions of tokens. Historical data also shows that sharp changes in SHIB burn activity do not reliably predict price direction. Traders are likely to focus more on technical support, meme-coin demand, liquidity and broader crypto-market sentiment. Sustained burns could improve SHIB’s scarcity narrative, but the latest reversal is primarily a sentiment signal rather than a fundamental price catalyst.
Neutral
The news is neutral for SHIB because the initial 1,020% burn-rate increase was followed by a 91.31% decline, showing that burn activity remains volatile rather than consistently supportive. Although the earlier removal of 20.82 million SHIB could boost short-term community engagement, it represents only a negligible share of SHIB’s circulating supply and is unlikely to create a meaningful supply shock. In the short term, technical factors appear more important. SHIB failed to hold its move above the $0.0000060 resistance area, while support near $0.0000056 and the $0.0000055 breakdown level are now closely watched. A move below those levels could increase selling pressure and expose the $0.0000051-$0.0000052 region. Conversely, holding support and renewed meme-coin demand could help stabilize the token. Over the longer term, sustained burns may support the scarcity narrative, but historical burn-rate changes have not reliably predicted SHIB price performance. Traders are therefore likely to prioritize liquidity, market-wide risk appetite, technical structure and demand over isolated burn statistics. The event may influence sentiment and volatility, but its direct price impact is limited.