- ShibaInu is facing increased bearish pressure after breaking a key support level, signaling a potential 28% price decline.
- Shiba nu’s daily burn rate has dropped by over 63%, raising concerns about its long-term deflationary goals.
ShibaInu Faces Fresh Selling Pressure After Key Support Break
ShibaInu (SHIB) is facing turbulent times as it recently broke below a crucial support level, sparking fears of a potential 28% price plunge. Despite a surge in trading activity, the token is showing weak momentum on technical charts, casting doubt on its short-term outlook. As of now, SHIB trades around $0.00001257, down nearly 3% in the past 24 hours, even though trading volume soared by over 88%, signaling intense market activity with buyers and sellers battling for control.
Support Holds But Resistance Builds
The key support zone between $0.00001180 and $0.00001200 provided some relief after the recent sell-off, acting as a temporary floor where buyers entered the market. However, the token’s attempt to recover faced stiff resistance near the $0.00001294 to $0.00001300 range—the previous daily highs where sellers remain firmly in control. Without breaking this resistance decisively, SHIB risks falling further, adding pressure on investors already cautious from the bearish signals.
Technical Indicators Point to Weak But Potentially Shifting Momentum
The MACD (Moving Average Convergence Divergence) indicator reveals that both its lines remain below zero, confirming the ongoing bearish trend. Yet, these lines are converging, which could hint at a near-term bullish crossover. If this happens, SHIB might experience a temporary price rebound. Meanwhile, the Relative Strength Index (RSI) is at 39.76—just above oversold territory but not yet signaling strong buying momentum. If RSI rises above 50, a brief bullish phase may be on the horizon, but for now, uncertainty dominates.
Burn Rate Drop Threatens Long-Term Deflation Goals
One of SHIB’s key value drivers is its token burn mechanism, designed to reduce circulating supply and support price appreciation over time. However, recent data shows a sharp 63% drop in the daily burn rate, with only about 5 million ShibaInu tokens burned in the last 24 hours. This slowdown threatens the progress toward reducing the overall supply, which currently stands at roughly 589 trillion tokens after over 410 trillion have already been burned. If burn activity continues to falter and demand weakens, SHIB’s deflationary narrative may lose steam, adding further downside risks.
What’s Next for SHIB?
ShibaInu’s path looks uncertain as it grapples with bearish technicals and weakening fundamentals. While a short-term recovery isn’t off the table, investors should watch closely for key resistance breaks and renewed burn activity to regain confidence. Until then, the threat of a deeper correction looms large, making cautious trading and risk management essential for SHIB holders.
