Shiba Inu’s Downtrend Intact as Daily Burn Rate Tanks by 63%
Shiba Inu (SHIB) is currently experiencing a downturn despite a recent recovery from overnight lows. This decline is largely attributed to a significant drop in the daily burn rate, which has dampened expectations of deflationary pressure. While SHIB has rebounded to approximately $0.000012650, it remains within a downtrend established by connecting the May 12th and May 23rd highs with the May 17th low.
The substantial 63% decrease in the daily burn rate—the number of SHIB tokens permanently removed from circulation—is a major factor contributing to this bearish trend. This reduction undermines the project’s deflationary tokenomics, a key element intended to increase the token’s value over time. This decline contrasts sharply with a 78% surge in trading volume.
Despite the negative trend, on-chain data suggests potential support levels. A notable concentration of SHIB tokens is held by investors with a cost basis between $0.000012 and $0.000013, indicating a strong possibility of these levels acting as heavily defended price zones. High trading volumes are anticipated within these ranges.
Over the past 24 hours, support materialized around $0.00001236, evidenced by substantial buying volume, suggesting accumulation at lower price points. A significant volume spike occurred at 08:02, exceeding 14.9 billion in trading activity, reinforcing the bullish momentum that propelled SHIB to its session highs. The subsequent price stabilization suggests a period of consolidation is underway before the next major price movement.
This combination of a reduced burn rate, impacting deflationary expectations, and on-chain data highlighting potential support zones paints a complex picture for SHIB’s near-term future. While the downtrend remains, significant buying pressure at certain price points and the overall market volatility suggests further price fluctuations are likely. The next few days will be crucial in determining whether SHIB can successfully break the current downtrend or succumb to further bearish pressure.
