Shiba Inu price sees a further 50% crash to $0.0000054 as a descending triangle pattern emerges despite the 7,200% increase in $SHIB burn rate.
Shiba Inu (SHIB) has been in a gradual decline over the past month, losing more than 24% in value during that time.
Shiba Inu's price today trades at $0.0000113 on June 21st, but technical experts suggest that another 50% drop is imminent. Furthermore, SHIB's recent increase in burn rate by 7,200% in 24 hours did little to boost investor confidence.
Shiba Inu's price faces a 50% decline as it tests key support.
The weekly $SHIB price chart shows that this top meme token has been on a steep decline for over a year, but continues to defend the support level at $0.0000113. Defending this support despite falling prices, SHIB has formed a descending triangle pattern.
A descending triangle is often bearish because it shows that selling pressure is gradually increasing while buyers stay on the sidelines. If the Shiba Inu price falls below $0.0000113, it could fall by 50% to a multi-year low of $0.0000054.
A drop below $0.00001 could be detrimental to SHIB's price performance, as another zero increase could undermine investor confidence.
The chances of a 50% crash are also higher than the 50-day SMA of $0.0000169. Shiba Inu's price is about 54% below this SMA, and needs to crossover above it to confirm that short-term momentum has shifted bullish. This SMA level is also at the upper trendline of the descending triangle.
The RSI also confirms that the Shiba Inu price forecast is bearish, with its reading of 39 indicating aggressive selling behavior. It also shows that buyers are not ready to buy the dip despite recording a continuous decline in the price for over a year.
The bearish technicals seen on the weekly time frame are consistent with a previous article stating that $SHIB MVRV has formed a death cross. The formation suggests that short-term holders are starting to feel the pinch.
SHIB Burn Rate Spikes 7,200%
Shiba Inu’s burn rate has increased by 7,200% in the past 24 hours, according to data from Sheburn. After this increase, more than 12 million SHIB tokens have been removed from circulation, which could lead to a bullishness for Shiba Inu's price if demand also increases.
The increased burn rate also coincides with a lack of strong fundamentals, as activity on the two networks of the shibarim layer continues to decrease. Data from DeFiLlama shows that Shibarium’s TVL has dropped to $1.89 million, after hitting a high of $3.14 million on May 11. This shows that it has been reduced by almost half within six weeks.
Shiba Inu's price is also at risk of further declines due to a sharp drop in funding rates, as evidenced by Quinglass data.
The metric has fallen sharply to its lowest level in nearly a month, indicating that traders are opening short positions as they expect the price to decline.
A combination of bearish technicals, weakening network activity, and negative market sentiment suggests that SHIB's price may fall further. Even the recent rise in burn rates has failed to cool the markets.
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