Usman Salis
Shiba Inu (SHIB), the beloved meme coin that captured hearts worldwide, is flashing warning signals that have traders on edge. While burn rates have exploded by an eye-popping 1,550%, the token's price action tells a different story. Trading just under the crucial $0.000013 resistance level, SHIB appears to be setting up for a potential breakdown that could send it tumbling toward key support zones.
SHIB (SHIB) Price Struggles Below Critical Resistance
Currently trading at $0.00001298, Shiba Inu finds itself in a precarious position just below the psychologically important $0.000013 level. According to a detailed analysis SHIB has already shed 18% from July's peak and sits 27% below its year-to-date high.
The chart reveals a textbook head-and-shoulders pattern forming – a bearish signal that's got technical analysts raising eyebrows. This classic reversal pattern suggests that unless SHIB can muster enough strength to break back above $0.000015, we could be looking at a slide toward the $0.00001027 support zone, or potentially even lower.
What makes this setup particularly concerning is how it aligns with the broader crypto market's declining momentum. While meme coins often dance to their own beat, SHIB seems to be following the market's lead this time around.
Weak On-Chain Metrics Paint Grim Picture for SHIB (SHIB)
Here's where things get really interesting – and not in a good way for SHIB holders. Despite that absolutely massive 1,550% surge in burn rate that had the community buzzing with excitement, the underlying demand for the token remains disappointingly weak.
The data doesn't lie: investor holdings are shrinking, whale activity has cooled off significantly, and futures open interest is dropping like a stone. It's almost like the market is saying one thing while doing another entirely.
But perhaps the most telling sign comes from Shibarium itself. The layer-2 solution's total value locked (TVL) has plummeted to just $1.69 million – a figure that signals waning confidence in the broader Shiba ecosystem. When your own blockchain's TVL is struggling, it's hard to paint a bullish picture for the native token.
These metrics create a perfect storm of bearish sentiment that's likely to keep a lid on any near-term recovery attempts. While burn rates grab headlines and excite retail investors, institutional players and whales seem to be voting with their wallets by staying on the sidelines.
Usman Salis
