Shiba Inu Price Drops ~6% as Burn Rate Hits Zero Again, Support Broken
Shiba Inu (SHIB) saw its token burn rate drop to zero for the second time in a week, coinciding with a roughly 6% 24-hour price decline. On-chain tracker Shibburn reported no SHIB tokens removed in the latest 24-hour window; the prior burn, 48 hours earlier, destroyed only 777,777 SHIB. Circulating supply remains about 585.42 trillion SHIB, pausing the project’s deflationary mechanism. SHIB traded between a daily high of $0.000006809 and a low of $0.000006415, with current price around $0.000006325. Trading volume rose about 12% to $180.43 million, largely reflecting sell-side flows; spot flows spiked over 1,500% but did not reverse the downtrend. Technical analyst commentary flagged a break below key support at $0.000006672, with one analyst warning of a possible large downside (up to ~81%) if bearish momentum continues. Broader market weakness — notably Bitcoin falling over $5,000 intraday — added sector pressure; BTC reclaiming roughly $72,500 is cited as needed to relieve downside pressure. Key takeaways for traders: halted burns remove a common supply-side tailwind for SHIB; increased volume appears dominated by selling, raising short-term downside risk; breach of critical technical support heightens probability of larger declines; monitor BTC price action and on-chain burn activity for near-term direction.
Bearish
The combined reports point to a bearish outlook for SHIB. Two zero-burn days remove a recurring supply-side bullish argument and stall token deflation. Price action shows a ~6% drop on increased volume that appears dominated by selling, and a clear technical break below the cited support at $0.000006672 increases the likelihood of further declines. The large spot flow spike indicates elevated trading activity but not sufficient buy-side absorption. Macro/market context — a >$5,000 intraday drop in BTC — compounds downside pressure; BTC needs to reclaim ~ $72,500 to help stabilize risk assets. In the short term, expect elevated volatility and higher downside risk until burns resume, buy-side demand returns, or BTC stabilizes. In the medium to long term, persistent zero-burn periods combined with continued selling could slow supply-constrained rallies and keep price pressure on SHIB; conversely, resumed burns or a BTC-led market recovery would be necessary to shift the bias back toward neutral or bullish.