Shiba Inu Burn Rate Plummets: SHIB Price To Pull Back Below $0.00001400?

• Shiba Inu burn rate drops sharply to -99.36%, raising concerns over weaker supply control and potential price pressure below $0.00001400.
• Nearly 95 trillion SHIB tokens sit at $0.000008–$0.000014, risking heavy sell-off if price dips below critical $0.000014 support.
• MACD and RSI indicators show bearish momentum as SHIB trades near $0.00001354, with long liquidations surpassing $1.37M in 24 hours.

Shiba Inu’s burn rate has seen a sharp decline recently, raising questions about its possible effects on the Shib price. The burn rate, which measures the number of tokens permanently removed from circulation, has dropped to -99.36%.

This drastic change comes as SHIB trades near a crucial support level of $0.00001400. As of the latest data, the Shib price was around $0.00001301, showing an intraday rise of over 1%.

Market participants are closely watching whether this burn rate drop could cause SHIB to fall below this key price point.

Shiba Inu Price Burn Rate Decline and its Impact on Price Support

The burn rate for Shiba Inu tokens, which measures the number of tokens permanently removed from circulation, has dropped sharply to -99.36%.

Only around 200,000 SHIB were burned in the last 24 hours, marking a significant decline compared to earlier periods when token burning was more consistent.

Burning tokens reduces the circulating supply and can create upward price pressure. A sharp reduction in burn activity suggests the opposite effect, potentially weakening price support.

A large concentration of approximately 95 trillion SHIB token is currently held at price levels between $0.000008 and $0.000014.

On-chain data shows these tokens cluster around an average cost basis of $0.000011. If the SHIB price falls below the critical $0.000014 level, this could prompt increased selling pressure as holders seek to exit positions near their purchase price.

The $0.000014 level itself is fragile, supported by only 4.97 trillion SHIB tokens held by 8,410 addresses. This thin support makes the price vulnerable to a further decline if the burn rate remains low and selling intensifies.

SHIB Price Technical Indicators Show Bearish Momentum

Recent technical analysis reveals bearish signals for SHIB price. The token has been trending downward, with lower highs and lower lows marking the price action.

SHIB recently failed to hold above the 38.2% Fibonacci retracement level near $0.00001489, confirming resistance in this area.

The MACD indicator shows the MACD line below the signal line, both moving deeper into negative territory. This points to increasing selling momentum.

Meanwhile, the Relative Strength Index (RSI) is near the oversold threshold at 32.99, signaling weak buying pressure. While the RSI suggests the possibility of a short-term bounce, the overall trend remains bearish.

Trading volumes increased by nearly 57% to $207 million, showing higher market activity but not enough to reverse the price decline. Open interest declined by over 9%, indicating that some traders are closing positions, likely due to uncertainty around SHIB price movements.

Market Sentiment and Trader Positioning Around SHIB Price

Market sentiment towards SHIB shows a tilt toward bearish positions. The long/short ratio on Binance is below 1, meaning short positions slightly outnumber longs.

However, on the OKX exchange, this ratio stands at 2.36, suggesting more traders hold long positions there.

Liquidation data reveals that long positions have been liquidated at higher volumes than short ones over the past 12 and 24 hours. Specifically, long liquidations totaled over $1.2 million in 12 hours and $1.37 million in 24 hours. Conversely, short liquidations were much lower during the same periods.

Such liquidation patterns suggest that traders betting on price increases may be exiting, which could further pressure SHIB price below $0.000014.

Shiba Inu Price Key Levels to Watch Moving Forward

Shiba Inu’s pricing still respects the key levels it has reached. SHIB struggled to move up, as strong selling pressure formed between $0.00001467 and $0.00001470. While writing, the token is supported by prices around $0.00001426 and $0.00001436.

SHIB will probably go upward or downward based on what happens at the $0.000014 support level. Achieving this goal could help the coin recover to prices last seen this month of around $0.00001764.

If $0.000014 is lost, it might cause sellers to step in and target the huge 95 trillion SHIB tokens waiting at that level.

In addition, traders and investors are keeping an eye on major economic trends, like upcoming Federal Reserve inflation statistics, which could change the state of the crypto market as a whole.