Shiba Inu Risks Another Drop as Burns Fall 38%: What's Going On?
Shiba Inu’s burn rate fell 37.87% over the past 24 hours, raising the risk of another leg down as weaker token-burning activity coincides with broader crypto weakness.SHIB’s Burn Rate Drops 38% in a Single DayRoughly 1.61 million SHIB burned within 24 hours across four transfers, pushing total burns to 410.85 trillion SHIB, or 41.08% of the initial supply.Seven-day burn activity fell even harder, down 25%, showing this isn’t a one-day blip.Trading activity tells a similarly shaky story:Open interest: down 8.40% to $28.58 millionFutures volume: down 3% to $35.66 millionLiquidations: $99,870 total, with longs taking the bigger hit at $62,700, or 63%Funding stayed slightly positive at 0.0057%, but sell orders dominated on OKX and Gate, and top traders leaned short too, a sign of caution even with price holding up.Futures recorded $3.7 million in net inflows over the same period. The latest four-hour window also improved, with $756,000 in futures inflows and $49,960 in spot inflows.Still, with open interest falling and spot flows staying negative, there’s not much here pointing to a real recovery yet.Why the Broader Market Backdrop Isn’t Helping, Bitcoin fell to $69,000 while Ethereum and XRP slid as much as 6% over the past 24 hours.Seven separate pressures are hitting crypto all at once: rising Dollar Index strength on firming Fed rate hike odds, Nvidia CEO Jensen Huang’s resignation, MSCI dropping Strategy from its global indexes, $1.44 billion in Bitcoin ETF outflows over five straight sessions, and uncertainty hanging over the CLARITY Act under a Democratic Congress.Where SHIB Stands TechnicallySHIB slipped to $0.00000433, testing rising support near $0.00000430 after briefly falling to $0.00000416.Buyers recovered the trendline following that intraday dip, though price remains below all four declining EMAs, with RSI at 33.91 signaling weak momentum without reaching oversold territory.Preview Image: Shutterstock