- Shiba Inu faces strong resistance at $0.000015 despite a surge in its weekly burn rate.
- SHIB’s price remains under pressure as traders cut exposure amid declining market sentiment.
Shiba Inu (SHIB) has seen a sharp increase in its weekly burn rate, with nearly 129 million tokens removed from circulation in the past seven days. This represents an 11.82% rise, showing continued community efforts to reduce supply.
However, the last 24 hours paint a different picture. Only 21.95 million SHIB tokens were burned, marking a 27.19% decline compared to the previous day. Despite this burning activity, SHIB’s price has failed to gain momentum. The token has dropped 7.03% in the past 24 hours, currently trading at $0.00001341.
Market Cap and Resistance Levels
The meme coin’s market cap has also suffered, falling 7.02% to $7.85 billion. Shiba Inu continues to face strong resistance at $0.000015, preventing any significant breakout. On the downside, support sits at $0.000013, a critical level to watch in the coming days.
SHIB’s total supply remains high at 589.25 trillion tokens. This massive supply makes it difficult for burns alone to drive price appreciation in the short term. Investors are closely watching if the recent burn activity can counteract the growing bearish sentiment.
Traders Cut Exposure Amid Bearish Trends
Data from Coinglass shows that SHIB futures open interest has dropped significantly. This suggests that traders are cutting exposure as volatility rises. Key liquidation zones have been identified at $0.00001413 and $0.000015. If SHIB drops to $0.00001413, nearly $350,000 worth of long positions could be liquidated. On the other hand, a breakout above $0.000015 could wipe out approximately $750,000 in short positions.
With trading volumes declining, buying interest at current levels remains weak. This adds further pressure to SHIB’s price and raises concerns about its short-term direction.
Can the Burn Strategy Rescue SHIB?
Despite the rise in SHIB’s burn rate, the daily burn slowdown raises doubts about whether supply reductions alone can trigger a recovery. The token has fallen over 7% in just 24 hours and more than 22% in the past month.
Historically, SHIB has relied on strong community engagement and speculative interest to fuel rallies. However, recent price action suggests that investor enthusiasm is fading. Futures open interest is declining, indicating a cautious market approach.
If sentiment does not improve, SHIB could retest its key support at $0.000013. A breakdown below this level may lead to further losses. Meanwhile, traders will be watching burn activity closely. If it regains momentum, it could provide some relief for SHIB’s price.
The coming weeks will be crucial in determining SHIB’s next move. Will the burn strategy be enough to reverse the trend, or is a deeper decline on the horizon?
