Shiba Inu is holding above $0.0000113, but a breakdown could trigger a 50 percent fall based on bearish technical signals.
Despite a 7,200% increase in burn rate, SHIB has failed to attract new buying momentum or positive price movement.
Declining activity in Shibarium and negative funding rates reflect falling confidence among traders and network participants.
Shiba Inu (SHIB) has dropped over 24% in the last month, with the current trading price at $0.0000113 as of June 21. The token is struggling to maintain a support level, though based on the technical indicators, a further loss of 50 percent might be in the cards. A breakdown below this price point could lead SHIB toward a multi-year low at $0.0000054.
SHIB has built a descending triangle on a weekly chart. This trend normally signifies pressures of growing sell-side against the faltering demand. Provided that the token falls below the support of $0.0000113, the falling pattern might cause a big decrease, which will be associated with the bearish mood that prevailed for more than a year.
SMA Divergence Highlights Weak Momentum
The 50-day Simple Moving Average (SMA) stands at $0.0000169. Currently, SHIB trades nearly 54 percent below this level, emphasizing the lack of bullish momentum. The SMA aligns with the triangle’s upper boundary, which the token needs to cross to shift the short-term trend. Until that happens, technical conditions remain unfavorable.
The Relative Strength Index (RSI) is currently at the level of 39, which points to the dominance of sellers. There is still buyer uncertainty to build at a lower price, even though the trend has been negative.
This also provides an additional argument to the bearish side since investors have shown a lack of confidence in it.
Burn Rate Surge Fails to Boost Price
Over 12 million SHIB tokens were burned in the last 24 hours, pushing the burn rate up by 7,200%, according to data from Shibburn. However, this spike has not impacted price action positively. Burn efforts are not enough to counteract broader market weakness and declining investor sentiment.
The total value locked (TVL) in Shibarium has fallen from $3.14 million in May to $1.89 million. This marks a 40% reduction, underlining shrinking network activity. Meanwhile, funding rates have hit their lowest levels in nearly a month, indicating increased short interest.
The post Shiba Inu Price Risks 50% Crash as Support Level Faces Renewed Pressure appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
