Shiba Inu Slides Amid Rising Burn Rate and Market Woes
On Thursday, Shiba Inu (SHIB) experienced a steep drop, plunging over 3% in value. Despite the burn rate soaring more than 816%, SHIB hit $0.00001212—a 25% decline from its July peak. The token now sits at a critical support level, heightening the risk of a significant downturn.
The downturn in SHIB came as the broader crypto market faltered. Traders grew cautious ahead of the non-farm payroll data, leading many coins, including Bitcoin and altcoins, into negative territory.
A higher burn rate did little to prop up SHIB’s price. Since its launch, 410 trillion SHIB tokens went up in “smoke,” yet the price still tumbled by double digits. While the recent burn amounted to 5.3 million tokens, equivalent to just $63, the crypto is valued at over $7 billion. This stark contrast highlights the disconnect between the burn rate and the price action.
An additional factor contributing to the minimal impact of the burn rate is Shibarium, SHIB’s layer-2 network. It hasn’t generated much revenue, with network fees totaling only $6 in the last 24 hours.
In technical terms, SHIB’s daily chart reveals a concerning trend. At $0.00001210,the coin has dipped below the 50-day and 100-day EMA lines. With high resistance from a descending trendline formed in May, the future appears bleak.
Analysts predict a possible strong bearish breakout, perhaps driving prices down towards the year-to-date low of $0.000010—another 15% drop.
