Shiba Inu Struggles to Recover Amid 63% Slump in Daily Burn Activity

SHIB Dips Despite Bounce as Token Burn Rate Falls 63%, Clouding Deflation Momentum

Shiba Inu (SHIB) saw a modest rebound from early-session lows on Monday but remains locked in a broader downtrend as its daily burn rate tumbled 63%, raising fresh concerns about the token’s deflationary trajectory.

After falling to a low of $0.00001234 during the Asian trading hours, SHIB recovered to trade near $0.00001265. However, its short-term technical structure continues to point lower, with descending trendlines from the May 12 and May 23 highs still capping upside potential.

The sharp decline in the burn rate—the number of tokens permanently removed from circulation—has blunted SHIB’s core supply-reduction narrative, even as trading volume rose sharply by 78% over the last 24 hours.

What the Data Shows:

Defended Levels: On-chain positioning highlights heavy investor exposure between $0.000012–$0.000013, a zone likely to act as short-term support.
Buyers Step In: A bounce from $0.00001236 was backed by strong accumulation, suggesting active defense at lower levels.
Volume Spike: A significant trade burst at 08:02 UTC saw 14.9 billion SHIB change hands, helping drive the brief rally to intraday highs.
Flat Finish: Prices stabilized into the U.S. close, hinting at possible consolidation as traders await a clearer directional signal.

Although SHIB has shown pockets of strength, the slowing pace of token burns could stall longer-term bullish sentiment unless burn mechanics regain momentum.