SHIB Price Struggles Despite 31.5M Tokens Burned, What’s Next?

Shiba Inu (SHIB), the world’s second-largest meme coin, is poised for a price recovery due to bullish price action and an impressive 24-hour burn rate. Data from the SHIB burn tracker recently revealed in a post on X (formerly Twitter) that the meme coin’s burn rate has surged by a staggering 4,137.17%, with 31,556,987 SHIB tokens burned in the past 24 hours.

Shiba Inu (SHIB) Price Momentum

This significant surge in the burn rate has drawn considerable attention from crypto enthusiasts, as it could help reduce supply and drive further price momentum. SHIB is currently trading near $0.0000143 and has recorded a modest price increase of over 0.50% in the past 24 hours. However, the meme coin has lost more than 22% of its value over the past 30 days.

SHIB Price Action and Upcoming Level

With this significant price drop, SHIB has recently retested a crucial support level at $0.000013, which has historically acted as a rebound zone. According to expert technical analysis, SHIB appears bearish and could decline by 20% in the coming days. This bearish outlook is driven by the prevailing negative market sentiment and the formation of a doji candle at the $0.000015 resistance level.

Amid the bearish price action, traders appear to be losing interest, seemingly abandoning SHIB trading. Data from on-chain analytics firm Coinglass reveals that SHIB’s futures open interest (OI) has dropped by $531 million to $151 million, with this number continuing to decline.

Major Liquidation Areas

At press time, the major liquidation areas are at $0.00001413 on the lower side and $0.000015 on the upper side, with traders over-leveraged at these levels.

If market sentiment remains unchanged and the price drops to the $0.00001413 mark, nearly $350K worth of long positions will be liquidated. Conversely, if sentiment shifts and the price rises to the $0.000015 mark, nearly $750K worth of short positions will be liquidated.

These on-chain metrics reveal that active traders are currently bearish on SHIB, believing that the meme coin’s price won’t cross the $0.000015 mark anytime soon.