Shiba Inu Price in Danger: Burn Rate Plummets 99%, Whales Sell, and Shibarium Loses Steam

After a brief rebound, the popular meme cryptocurrency Shiba Inu (SHIB) is once again under selling pressure. Although the token has rebounded more than 47% from its recent lows this month, reaching $0.000010, data now suggests that the rally is losing strength — and that SHIB may be heading for another downturn.

Burn Rate Collapses 99% According to data from Shibburn, the SHIB burn rate has fallen by more than 99% in the last 24 hours — with only 69,530 SHIB tokens destroyed, worth less than one dollar. This sharp decline reflects weakened community activity and a slowdown in the deflationary mechanism that has long been a key narrative for Shiba Inu.

One of the main causes is the stagnation of the Shibarium ecosystem, which was expected to generate consistent burn fees through on-chain transactions.

Shibarium Struggles: Activity and Fees Near Record Lows The total value locked (TVL) on Shibarium has dropped 43% over the past 30 days, falling to just $873,820.

The decline accelerated following a recent hack on ShibaSwap, which shook investor confidence. Despite boasting nearly 300,000 accounts, the network now reports fewer than 500 active users, and daily fees amount to less than $10.

Part of these fees — paid in BONE — are converted to SHIB and burned, but this mechanism has effectively stalled.

Whales and Smart Money Are Exiting On-chain data shows that large investors are steadily reducing exposure.

Over the past 30 days, smart money traders have sold off 10% of their SHIB holdings, cutting their total to 46.8 billion tokens.

Meanwhile, whales have slashed their positions from 231 billion SHIB (as of Oct 12) to just 117 billion. This trend signals declining confidence among major players and raises concerns about further selling pressure in the near term.

Technical Analysis: Possible Return to Summer Lows Technically, SHIB remains locked in a descending triangle pattern and continues to trade below key resistance at $0.00001163.

The token has also fallen below both the 50-day and 100-day exponential moving averages (EMA), confirming bearish momentum. Although SHIB has seen a slight recovery over the past three days, the True Strength Index (TSI) remains below the zero line, indicating weak trend momentum. If the current structure holds, analysts warn that SHIB could resume its downtrend and retest the June low near $0.00000695.

Weak Bounce, Uncertain Future Unlike other altcoins such as Zcash or Synthetix, which have recently posted stronger gains, Shiba Inu continues to lag behind.

With on-chain activity falling, burn rates collapsing, and whales exiting, analysts fear that the recent rebound may have been a short-lived relief rally. For now, the SHIB community still hopes for a comeback — but the data suggests the meme dog might be barking again, not biting.

#SHIB , #shibaInu , #memecoin , #shibburn , #CryptoAnalysis

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