Shiba Inu Burn Rate Rockets 1900% But SHIB Price Risk Remains, Heres Why

SHIB/USDT Daily Chart | Source: TradingView

This gap suggests that the price would need significant momentum to recover and signal any bullish reversal.

The Moving Value to Realized Value (MVRV) has also flashed a death cross, suggesting that many short-term holders are now sitting on losses.

Additionally, these signals underline a possible continuation of the downtrend despite short bursts of positive news, such as burn surges.

Wider Market Pressure Adds to SHIBs Struggles

Outside of technical factors, macro sentiment in the crypto space also appears to be working against Shiba Inu coin.

Meme coins have been among the hardest hit in the recent downturn, as investors shift toward more stable assets.

Trading volume for SHIB stands at around $127 million in 24 hours, but that figure reflects uncertainty rather than confidence.

Additionally, activity on Shibarium, Shiba Inus Layer 2 network, has slowed sharply.

Total Value Locked (TVL) has dropped from a May high of $3.14 million to just $1.89 million, a nearly 50% decrease in six weeks.

This suggests waning interest in SHIBs broader ecosystem, which could affect its long-term outlook.

Although Shiba Inu burn rate may grab headlines, it has not yet translated into meaningful gains.

With strong resistance from technicals and weak on-chain fundamentals, the price remains under pressure.

For now, SHIB investors may need to temper their expectations until stronger recovery signals appear.