Peter Smith
SHIB (Shiba Inu) is in serious trouble right now. The token is sitting at $0.000013, down 18% from July's highs and 27% below its yearly peak. What's really scary? Even a massive 1,550% jump in burn rate isn't helping the price recover.
Here's the thing - burning tokens usually pushes prices up by reducing supply. But SHIB seems to be ignoring this basic rule, and that's got investors worried about what comes next.
SHIB Bearish Head-and-Shoulders Pattern Spells Trouble
Looking at the charts, things aren't pretty for SHIB holders. The token has dropped below both its 50-day and 100-day moving averages - that's usually bad news for any crypto.
But here's where it gets really concerning. SHIB is forming what traders call a head-and-shoulders pattern. Think of it as one of the most reliable warning signs that a big drop is coming. The "head" peaked at $0.00001760, with both "shoulders" at $0.000016. The danger zone? If SHIB breaks below the neckline at $0.00001027, we could see it tumble all the way to $0.000090.
There's still hope though. If SHIB can push above $0.000015, it might just dodge this bearish bullet.
Why SHIB (Shiba Inu) Massive Burn Rate Isn't Working
Last Saturday, something crazy happened with SHIB's burn rate - it shot up 1,550% to 3.77 million tokens burned. Most of this came from one whale who basically threw 3.5 million tokens into the digital trash can, according to ShibBurn data.
Since 2021, SHIB has gone from 999.9 billion tokens down to 584 billion. That's a lot of burning, and it should be pushing prices up. But here's the problem - smart money investors are heading for the exits. They've cut their SHIB stash from 70 billion to 61.7 billion tokens in just one month, based on Nansen data.
When the pros are selling, that's never a good sign.
SHIB Ecosystem Problems Are Getting Worse
The whale situation isn't helping either. These big players have kept their holdings steady at 45 billion tokens since July - they're not buying more, which means they don't expect big gains anytime soon.
Even worse, futures traders are losing interest. Open interest has crashed from $328 million to just $173 million since July 22. When fewer people are betting on SHIB's future, that's usually bearish.
But the real kicker? Shibarium, SHIB's supposed game-changer blockchain, has only $1.69 million locked up. That's pathetic for a project that's supposed to drive SHIB's growth. Without a thriving ecosystem, even all that token burning might not be enough to save SHIB from a serious crash.
Peter Smith
