SHIB Burn Rate Soars to 112,000%, But Price Remains Under Pressure Despite On-Chain Strength

Shiba Inu’s (SHIB) token burn rate exploded by over 112,000% early this week, with more than 116 million tokens permanently removed from circulation. Despite this deflationary milestone, the memecoin continues to trade lower, reflecting a disconnect between supply-side improvements and short-term price action.

According to CoinDesk’s AI insights, the sharp burn surge coincided with a broader bullish backdrop for SHIB’s fundamentals. Over 527 trillion tokens are nearing profitability, and the Shiba Inu network continues to expand, surpassing 1.5 million unique wallet addresses. Additionally, transaction volume on its layer-2 scaling solution, Shibarium, hit new highs.

Token burns are typically aimed at reducing supply and increasing scarcity, a mechanism that can boost long-term price potential. However, SHIB has not yet responded positively in price terms. As of press time, SHIB was trading at $0.00001190 — down 2% in the last 24 hours and nearly 5% over the week.

Technically, the token faces stiff resistance around $0.0000122, where high-volume sell orders have repeatedly capped upward momentum. More than 500 billion tokens changed hands overnight, highlighting the struggle between bulls and bears.

Technical Analysis Highlights:

• A potential double-bottom reversal pattern is developing, which could lead to a 20% rally toward $0.000016.
• Resistance remains firm at $0.0000122, reinforced by above-average volume.
• The price is currently locked in a tight consolidation range between $0.00001203 and $0.000012.
• Notable volume spikes at 07:35 and 07:46–07:47 UTC coincided with attempts to break out from consolidation.

While on-chain signals remain constructive, SHIB’s price action continues to reflect caution, with investors likely awaiting confirmation of a breakout before committing to renewed upside bets.