Shiba Inu Burn Rate Plunges 98% as SHIB Loses 20-Day Support
Shiba Inu price fell amid Ethereum-focused ETF sell-offs, driving a 6% SHIB price drop to a 13-day low of $0.000012. Shiba Inu’s burn rate plunged 98.89% to 223,914 tokens after $255 million exited ETH ETFs, signaling reduced network participation. SHIB trading volume halved to $206 million amid lower on-chain activity. Technical indicators show bearish momentum as SHIB trades below its 20-day moving average and the lower Bollinger Band, risking further declines toward $0.00001164 and $0.00001100. Reclaiming the 20-day MA at $0.000013 is crucial for a rebound. The collapse in burn rate weakens deflationary pressure and heightens downside risks for traders.
Bearish
The near-100% collapse in Shiba Inu’s burn rate alongside a 6% SHIB price drop below its 20-day moving average highlights waning demand and network activity. Ethereum ETF sell-offs removed $255 million in liquidity, intensifying bearish momentum and halving trading volumes. Historically, drastic declines in burn rate have presaged further downtrends in memecoins as deflationary pressure eases. In the short term, traders may face forced liquidations around $0.00001164 and $0.00001100. Longer term, SHIB needs to reclaim the 20-day MA at $0.000013 to restore confidence; otherwise, bearish sentiment may persist until on-chain participation and burn activity recover.