SHIB’s weekly burn rate surged 491% over the past seven days, with 37.52 million tokens permanently removed from circulation, according to Shibburn. The increase did little to support price action. Over the latest 24 hours, the daily burn rate actually fell 14.18%, with only 4.95 million SHIB burned as downside pressure stayed in place.
The report linked the burn spike to a broader crypto selloff that intensified last Friday after stronger-than-expected US jobs data. Bitcoin dropped to its lowest level of the year, and liquidations spread across altcoins and meme coins, pulling Shiba Inu lower as risk appetite weakened across the market.
Loss of $0.000005 support accelerated the decline
Early on Saturday, SHIB fell to as low as $0.0000044, moving into a price range rarely seen before. The token had already retreated from $0.0000056, a level last seen on June 1. Once support at $0.000005 gave way, selling picked up and left the token exposed to deeper losses.
At the time of writing in the source report, SHIB was down another 1.37% over 24 hours, trading near $0.0000045. Available market data suggested that widespread liquidations made it harder for the asset to hold key levels, while softer risk appetite across crypto kept the pressure on.
Derivatives traders turn cautious as exchange outflows emerge
Positioning in derivatives markets has shifted into a more defensive mode. The article said SHIB open interest was nearing cycle lows, a sign that traders were becoming more cautious during ongoing volatility and were reducing short-term risk exposure. That matters because it points to limited conviction from leveraged participants.
On-chain activity showed a different signal. Notable outflows from exchanges were reported, and such moves have at times been read as accumulation. Even so, the source cautioned that exchange outflows alone do not confirm a durable reversal in SHIB’s trend.
Charts still show no clear recovery setup
Technically, SHIB remains below key moving averages across multiple timeframes. Price structure continues to show lower highs and lower lows, and the jump in token burns has not yet translated into a visible recovery on the charts.
Some momentum indicators have started to flash oversold conditions. Still, the report said the evidence is not strong enough to back a lasting rebound at this stage. Unless buyers reclaim lost support levels, SHIB appears to remain under near-term downward pressure.