The Shiba Inu (SHIB) token has once again drawn attention in the crypto market due to a striking contrast between its token burn rate and price movement. Despite an 800% surge in burn rate in recent days, SHIB’s price continues to decline, raising concerns among investors.
Burn Rate on the Rise
A sharp rise in burn rate usually signals reduced supply, which in theory should create upward pressure on price. For Shiba Inu, however, this has not been the case. While large volumes of tokens are being permanently removed from circulation, market demand has failed to keep pace—resulting in persistent downward pressure on price.
Why the Price Is Still Falling
Analysts point to broader market weakness and increased risk aversion as the primary reasons behind SHIB’s underperformance. Volatility in major assets like Bitcoin and Ethereum has made meme-based tokens such as Shiba Inu even more vulnerable.
At the same time, the lack of significant ecosystem developments has left investors uncertain about long-term growth potential. Many short-term traders continue to sell off their holdings, further dragging down the price.
Technical Analysis
Shiba Inu remains capped below a key resistance near $0.00001599, while strong support lies around $0.00001100. The token is also trading under its 50-day and 100-day EMAs, signaling a bearish bias. Unless SHIB breaks above resistance, the downside trend may persist, with the risk of further declines if support fails.
What’s Next ?
Experts warn that a higher burn rate alone cannot guarantee sustainable price growth. A combination of renewed investor confidence, tangible ecosystem upgrades, and broader crypto market stability will be needed for SHIB to stage a lasting recovery.
