SHIB Burn Rate Increases by 1,900% – Why Does the Price Still Face Risks?$SHIB SHIB0.00001116-1.06% The burn rate of Shiba Inu (SHIB) has skyrocketed by over 1,900% in the past 24 hours, but the price of this memecoin continues to show signs of weakness. Despite millions of tokens being removed from circulation, investor sentiment remains unstable. Notably, some technical indicators are suggesting that the price of SHIB may continue to decline further. The sharp increase in SHIB burn rate has not improved market confidence According to data from Shibburn, the burn rate of Shiba Inu surged by 1,900% in just 24 hours. Over 13.5 million tokens have been burned – marking one of the largest increases in a single day recently. However, this burn event coincides with signs of a bearish reversal in the broader market, and memecoins like SHIB are under greater pressure. Although the burn rate surged in 24 hours, data over 7 days shows a contrasting picture. Notably, the number of tokens burned weekly has decreased by nearly 20%, with just over 552 million SHIB removed from circulation. In fact, this decline indicates that the long-term momentum of the token burn process is weakening. This is also a factor limiting the potential for creating a sustainable price increase effect for SHIB. It should be noted that, despite efforts to burn tokens, the price of SHIB continues to slide. At the time of writing, this memecoin is trading at $0.0000108, down 5% in the past 24 hours. The market capitalization of SHIB has also correspondingly decreased to around $6.3 billion — reflecting the cautious sentiment that still envelops investors. Clearly, the surge in burn rate has not been enough to counteract the downward pressure from the overall market trend. Technical indicators for Shiba Inu show a bearish trend Notably, the price of Shiba Inu is currently trapped in a descending triangle pattern – a structure that often carries a negative connotation, with subsequent peaks continuously lower and supported by a strong support threshold. Currently, the price is below the important support area around $0.0000111. If it cannot reclaim this level, analysts warn that the price could fall as much as 50%, reaching a new low around $0.0000054. On the other hand, the Relative Strength Index (RSI) remains below the 40 threshold, reflecting ongoing selling pressure. Meanwhile, the 50-day simple moving average (SMA) is at $0.000013 – significantly higher than the current price of SHIB, indicating that the downward trend is still predominant. This gap suggests that the price of SHIB needs significant momentum to recover and reverse the current trend. The Market Value to Realized Value (MVRV) ratio has also issued a death cross signal, indicating that many short-term holders are currently in a state of loss. Additionally, these technical signals further reinforce the likelihood that the downward trend will continue, despite some short-term positive news like the sharp increase in token burn rate. General market pressure adds further difficulties for SHIB In addition to technical factors, macro sentiment in the crypto market is also unfavorable for Shiba Inu. Memecoins like SHIB are among the hardest-hit assets in the recent correction, as investors gradually shift towards more stable assets. The trading volume of SHIB in the past 24 hours reached about $127 million – but this figure reflects market hesitation more than confidence. Furthermore, activity on Shibarium – Shiba Inu's Layer 2 network – has also declined sharply. The total value locked (TVL) has dropped from a May peak of $3.14 million to $1.89 million – nearly a 50% decrease in six weeks. This indicates that interest in SHIB's expanding ecosystem is weakening, which could negatively impact long-term prospects. Although the SHIB burn rate is attracting attention, this has not yet translated into meaningful price increases. With strong pressure from technical analysis and less favorable on-chain factors, the price of SHIB is still under significant pressure. At this time, SHIB investors may need to temper their expectations until clearer recovery signals emerge.$SHIB