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06/12 19:27

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Shiba Inu Price at Risk of 35% Drop Despite SHIB Burn Rate Increase of 103,222%

Learn why the burn rate increase may not prevent a 35% price crash for Shiba Inu and how fundamental bearish events affect SHIB.

Shiba Inu (SHIB) price has fallen to a critical support level this week as whale selling and network activity are falling. Losing this support would increase the risk of the token falling 35% to its lowest level in 2023, even after the sudden increase in burn rate of 103,222%. As of June 12, SHIB price is trading at $0.00001263 today, down 27% from its highest point this year and 62% from its November high. This drop can be attributed to the recent drop in crypto market valuation due to the decline of BTC.  SHIB 24-hour volume fell 9% to $200 million.

Shiba Inu Price Technical Analysis

The three-day chart shows that Shiba Inu has fallen 28% from its May 10 high of $0.00001758. This crash has pushed SHIB to revisit the ascending trendline connecting the swing lows formed on October 23, March 2025, and April 2025. The recent bounce shows the importance of this support.

In addition, the aforementioned SHIB price crash has pushed it below its 50-day moving average at $0.00001476, indicating that the bears are in control. The Relative Strength Index (RSI), which measures the speed and change in price movement, is pointing lower below the neutral point at 50, highlighting the bearish momentum.  Similarly, the two Relative Vigor Index (RVI) lines have formed a bearish crossover pattern and moved to their lowest level since March this year. The RVI indicator compares the closing price of an asset with its trending range and then smooths out the result.

A volume-supported move below the ascending trendline could therefore trigger a 35% drop to $0.0000084, the lowest since January last year. 

An alternative scenario is that Shiba Inu price bounces above the ascending trendline. If this happens, initial support would be at $0.00001754, the highest point in May. A move above this level would confirm a bullish breakout. In this case, investors can refer to a previous CoinGape article that outlines a potential 20% rally for the Shiba Inu token.

 SHIB Burn Rate Has Spiked, But Risks Remain

One of the key catalysts for the price of Shiba Inu is that the burn rate has spiked today. Shibburn data shows that the burn rate jumped 112,839% to 102,141,121 SHIB on Thursday. This increase was caused by one user transferring 97,560,806 million coins to a burn address.

Most other on-chain metrics are not bullish for Shiba Inu. For example, Santiment data shows that the supply of SHIB tokens held by whales has been in free fall this year. It has fallen to 710 trillion, down from 736 trillion in March.

Other data shows that network growth has fallen sharply to its lowest level in a year. It has fallen to 445 from 4,812 on January 19. This metric analyzes the number of new addresses created during a given period. 

More metrics like social dominance and daily address activity have been trending downwards. In most cases, cryptocurrencies rise when these metrics rise.





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