Until now, around 410 trillion SHIB tokens have been permanently removed from circulation, Shibburn data shows.
Burns have often been used to support price by slowly reducing supply. However, with no tokens burned in the past day, that factor has become neutral in the short term.
Meanwhile, SHIB price action is no longer reacting to social hype or market mood. Current movement is driven mainly by leverage and liquidation pressure and is more sensitive to forced liquidations.
Leverage Levels Now Control SHIB Price Direction
According to CoinGlass data, the level that causes the most damage to long traders sits near $0.00777. On the other side, short sellers face pressure closer to $0.0086. With SHIB trading around $0.00816, the downside liquidation zone is much closer.
In meme coins which have thin markets, even small moves can trigger chains of liquidations. For SHIB, a decline of less than 5% is enough to start liquidating long positions.
SHIB Price Analysis: Risk Before Recovery
The weekly chart shows SHIB trading near a long-term support zone. A clear downward trend line has guided prices lower for months, and price is now sitting at the base of this structure.
The RSI near oversold levels and MACD still below the neutral line indicate that the momentum is weak for a recovery rally.
Source: TradingView
If support fails, the chart shows room for a roughly 20% drop from current levels before any primary demand appears. This aligns with the liquidation zone near $0.00777.
On the other hand, a recovery would first need to reclaim the red resistance zone on the chart, which could eventually lead to a re-test of the $0.00005 region.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
