SHIB weekly burn rate jumps 491%! What does the persistent price pressure mean?

Burn spike fails to lift the price

SHIB’s burn rate soared by an impressive 491% over the past week. Data reported by Shibburn confirm that 37.52 million SHIB tokens were incinerated during this period. However, the 24-hour figures painted a weaker picture: the daily burn rate fell by 14.18%, and only 4.95 million SHIB were burned in the most recent day.

Glossary: Token burning refers to the permanent removal of a specific amount of a cryptocurrency from circulation. Shibburn is a tracking platform that monitors SHIB token burns and publishes these figures for public access.

Shibburn data showed that 37.52 million SHIB were burned in the past seven days, marking a 491% increase in the weekly burn rate.

This surge in burn rates comes on the heels of a sharp selloff in the crypto market, which intensified last Friday after unexpectedly strong US jobs data triggered further price drops. Leading cryptocurrencies like Bitcoin fell to their lowest values of the year, sparking an increase in liquidations across altcoins and memecoins, including Shiba Inu.

SHIB price tumbles to $0.0000044

In the early hours of Saturday, Shiba Inu fell as low as $0.0000044, breaching a price band rarely seen before. This decline followed a retreat from $0.0000056, last seen on June 1. When the $0.000005 support was lost, the selling accelerated, leaving SHIB vulnerable to further declines.

Available data indicate that widespread liquidations made it increasingly difficult for the asset to hold this critical support level. Waning risk appetite across the broader market has only intensified downward pressure on SHIB. At the time of writing, the price had dropped another 1.37% over the past 24 hours to around $0.0000045.

Defensive moves in derivative markets

Investors on derivatives exchanges appear to be taking a more defensive stance, with SHIB’s open interest nearing cycle lows. This shift suggests that market participants are growing more cautious in the face of ongoing volatility and are looking to limit risk in the short term.

On-chain activity offered a different view, as notable outflows from exchanges were reported. Historically, such movements have sometimes been interpreted as signals of accumulation, but sources caution that this alone does not confirm a sustained trend reversal for SHIB.

No clear sign of a rebound in technical outlook

Technically, SHIB continues to trade below key moving averages across multiple timeframes. Price action reveals a pattern of lower highs and lower lows, and despite elevated token burns, no clear recovery is visible on the charts.

Although some momentum indicators are beginning to flash oversold readings, analysts note that there is not yet enough evidence to support a lasting rebound. Unless buyers can reclaim lost support levels, the near-term outlook suggests continued downward pressure for SHIB.