Downtrend Persists for Shiba Inu as Daily Burn Volume Sees Major Decline

SHIB Faces Technical Headwinds as Burn Rate Collapses 63%, Despite Volume Spike

Shiba Inu (SHIB) continues to face downward pressure after a brief intraday bounce, as the project’s daily burn rate fell 63%, raising red flags for its deflationary model. The memecoin recovered to $0.00001265 after hitting a low of $0.00001234 in early Asia trading, but remains confined within a multi-week descending channel.

While a short-term reversal attempt is underway, the collapse in token burn—SHIB’s primary supply-reduction mechanism—undermines long-term scarcity expectations. At the same time, trading volume surged by 78%, signaling increased speculative interest but little fundamental reinforcement.

Technical & On-Chain Snapshot:

• Price Structure: Downtrend remains intact, bounded by trendline resistance from May 12 and May 23 highs, and a base near the May 17 low.
• Support Levels: Dense wallet activity shows strong holder concentration in the $0.000012–$0.000013 range, marking it as a high-probability defense zone.
• Intraday Reversal: A bounce from $0.00001236 was accompanied by strong buy-side volume, suggesting short-term accumulation behavior.
• Volume Spike: Notably, 14.9B SHIB traded around 08:02 UTC, aligning with local highs and indicating active short-term traders.
• Momentum Outlook: Price consolidation in later sessions points to a wait-and-see stance. Continuation will depend on either a rebound in burn metrics or broader market recovery.

Until SHIB’s burn mechanism regains pace, upside momentum may remain capped. Watch for sustained closes above trend resistance and a rebound in burn activity before confirming trend reversal.