SHIB burn spikes 133% as price forms falling wedge — supply tightens but Shibarium adoption lags
Shiba Inu (SHIB) fell to multi-month lows (around $0.0000073) while on-chain metrics showed a sharp increase in token burns and continued exchange withdrawals. A 24-hour burn surge of 133% removed about 7.2 million SHIB, with more than 35 million burned over four days, trimming circulating supply to roughly 585 trillion. Exchange reserves have declined for months, suggesting accumulation into cold wallets. Technically, SHIB has formed a large falling wedge on the daily chart and the Percentage Price Oscillator shows bullish divergence, supporting a potential near-term rebound toward ~$0.000010, with that view invalidated below the year-to-date low at $0.0000069. However, off-chain fundamentals are mixed to weak: Shibarium’s TVL has plunged (~19% to $1.47M) with no notable protocol additions, 24h trading volume has cooled (~$96M), and futures open interest collapsed to about $77M from a YTD high near $550M. Earlier reporting noted an even larger burn spike (17,225%) tied to a ~30M token transfer to a burn address but pointed out the dollar value of that burn was tiny (~$250) versus SHIB’s multi-billion-dollar market cap. For traders: rising token scarcity and falling exchange supply are potential bullish supply-side factors, but weak ecosystem adoption, declining liquidity and derivatives activity, and bearish technical breakdowns (from the earlier report) argue for continued downside risk unless smart-money accumulation, meaningful Shibarium traction, or ETF-related demand re-emerge. Monitor burn rates, exchange balances, Shibarium TVL and developer activity, daily volume and open interest, and price action around $0.0000069 (bear invalidation) and $0.000010 (near-term target).
Neutral
The combined reports present mixed signals. On the bullish side, materially higher burn rates and steady withdrawals from exchanges reduce available supply — factors that can support price recovery if demand returns. Technical indicators from the later article (falling wedge and PPO bullish divergence) argue for a possible near-term rebound to about $0.000010, with clear invalidation below $0.0000069. On the bearish side, ecosystem fundamentals are weak: Shibarium TVL and developer activity are declining, spot and derivatives liquidity have cooled significantly, and earlier technicals showed a bearish breakdown below key moving averages. The earlier dramatic burn percentage (17,225%) was largely cosmetic in dollar terms, so it offers little fundamental support. Given supply-side tightening but weak demand, reduced liquidity and lack of ecosystem momentum, the most balanced classification is neutral: price could bounce on reduced supply or short-covering, but sustained upside requires renewed demand through on-chain adoption, larger holders accumulating, or external catalysts (ETF filings, major protocol launches). Traders should treat rallies cautiously and watch the $0.0000069 support and $0.000010 resistance levels, alongside on-chain activity, exchange flows, TVL and open interest for confirmation.