Shiba Inu (SHIB) Price: Token Burns Heat Up While Market Cools Down

TLDR

Table of Contents

Shiba Inu (SHIB) burn rate increased by 2061.22% with 20.83 million tokens removed from circulation in a single day
Despite the massive token burn, SHIB price dropped nearly 3% to $0.00001193
Technical analysis shows SHIB is forming a descending triangle pattern that could lead to a 50% price crash
SHIB could potentially fall to $0.000006 in 2025 if it breaks below the $0.000010 support level
Long-term outlook remains mixed with potential for recovery in coming years due to pro-crypto Trump administration policies

Shiba Inu, the popular meme cryptocurrency, experienced a remarkable 2061.22% increase in its burn rate on Tuesday, April 15, with over 20.83 million tokens removed from circulation in just 24 hours. Despite this massive reduction in supply, the token’s price continued to slide, dropping nearly 3% to $0.00001193.

The token burn, which transfers SHIB to null addresses making recovery impossible, is designed to reduce circulating supply and theoretically increase the value of remaining tokens. According to data from Shibburn, this latest burn event represents one of the largest single-day reductions in recent weeks.

However, the price reaction tells a different story. SHIB fell from an intraday high of $0.00001239 to a low of $0.00001182, showing that market forces are currently overpowering any positive impact from supply reduction.

Technical Analysis Points to Potential Crash

Chart analysis reveals SHIB has been stuck in a downtrend since reaching highs of around $0.000033 in late 2024. More concerning for investors is the formation of a descending triangle pattern, which often precedes major bearish breakouts.

The 21-day and 50-day moving averages have consistently acted as strong resistance levels throughout 2025. This technical setup has traders worried about a potential breakdown below the critical $0.000010 support area.

If this support fails, analysts suggest SHIB could experience a 50% crash, potentially falling all the way back to 2023 lows around $0.000006. This would represent a catastrophic loss for investors who bought during the higher price levels of late 2024.

The meme coin market as a whole has been experiencing deflation in recent months. The launch of former US President Donald Trump’s official meme coin reportedly pulled substantial liquidity from the space, leaving many investors facing losses.

Long-Term Outlook Remains Mixed

Despite the current bearish sentiment, some community members remain hopeful. A well-known Shiba Inu community figure known as “SHIB Knight” posted on social media that a “new pump wave is loading,” suggesting that a sustained break above $0.00001238 could pave the way for a new bull run.

The total circulating supply of SHIB currently stands at 584.37 trillion tokens. This massive supply has been cited by some analysts as a factor in the token’s relatively sluggish performance over the years, despite ongoing burn efforts.

One Wall Street expert identified as “wallstreetbets” on social platform X stated that “Despite burns, SHIB supply remains unchanged,” raising questions about the effectiveness of the burn strategy in meaningful supply reduction.

The broader cryptocurrency market has shown signs of stability in recent days as trade war fears recede and dovish Federal Reserve commentary supports market sentiment. However, this positive backdrop has not translated into price gains for SHIB.

Uncertainty about a possible US recession remains high. Recent economic data, including University of Michigan sentiment numbers, points to sharp economic deterioration. As recession probability rises, financial market sentiment could take another negative turn.

U. Mich consumer sentiment falls to 50.8 in April (53.8 estimated) pic.twitter.com/ziEeLAWFjC
— Yahoo Finance (@YahooFinance) April 11, 2025

In such a scenario, speculative assets like meme coins could be the first to suffer steep declines, with SHIB potentially leading the way down.

For investors with high risk tolerance, any major drop could present a buying opportunity. The Trump administration has positioned itself as pro-cryptocurrency, establishing a strategic Bitcoin reserve and pushing for friendly regulatory policies.

Some analysts believe that by 2029, cryptocurrency markets will likely be in a much better position than they are today, including major meme coins like Shiba Inu.

If economic conditions deteriorate and trigger a new wave of liquidity from central banks to support the economy, similar to 2020-2021, altcoins including SHIB could find the fuel needed for significant price appreciation.

While SHIB may fall to $0.000006 in 2025, it could potentially reach new all-time highs in the coming years if broader market conditions improve and crypto adoption continues to grow.

Investors considering SHIB should be prepared for extreme volatility and only invest amounts they can afford to lose completely. However, those who can endure the turbulence might eventually see substantial returns if long-term bullish predictions materialize.

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