Shiba Inu Faces 352% Burn Rate Drop, Price Struggles to Recover

  • SHIB trades sideways as 200-day EMA caps upside breakout attempt.
  • Token burn volume drops from 270K to just 161K daily.
  • RSI holds neutral at 54, suggesting indecisive market sentiment.

Shiba Inu (SHIB) showed mixed performance on July 27, 2025, reflecting a cautious market stance. The token closed slightly lower after testing both support and resistance levels. A declining burn rate has raised questions about SHIB’s deflationary strength. Momentum appears neutral as traders await a decisive price breakout.

SHIB Struggles at Critical Resistance as Bulls Lose Steam

SHIB/USDT closed at 0.00001397 after trading in a narrow range between 0.00001394 and 0.00001419. The token currently finds support at the rising 20-day EMA (0.00001364) and 100-day EMA (0.00001341). These levels provide near-term stability as bulls attempt to defend their positions. Meanwhile, stronger support lies around the 50-day EMA (0.00001264), underpinning the 0.00001260 area.

AD 4nXdiKelaxKetNtINVlne3B3SoPuDgU1YhVIneFvjpdPytcNHqQCL3P20u8RZDxN brrtVEHAshSOKXgExm90 Tug4FBesaOR wm5V RHTo7 sqXACXk0W0cAPzwy0UGhqH5y2YcV?key=p9edMKfvIwXl3JGIiyTY g

After peaking at 0.00001560, SHIB pulled back and is now consolidating. Analysts interpret this as a retest of the short-term EMAs. The Relative Strength Index (RSI) stands at 54, signaling balanced momentum. Moderate volume at 332 million SHIB suggests indecision as the price remains range-bound. Analysts believe a break above the 200-day EMA (0.00001451) could confirm upward continuation.

SHIB Burn Rate Sees 40% Decline in 24 Hours

Shibburn’s recent data show that SHIB’s burn rate dropped by 40.15% over the last 24 hours. Just 161,238 SHIB tokens were burned, down from over 270,000 the previous day. The chart from Shibburn shows a steady decline from 250,000 to below 170,000 tokens.

AD 4nXcGfQNZDhVtqy X e3Mbncy98RR1y4Kd2oI8t4mecZ3zGC53B96UJesmj0LfgG6EBv yiDTqo0cNrVyBkkNEEvTLnG6ii47LzIfGoOzHE2UCl2H6VOkroWDd3Xg W ImoaZXpUTQ?key=p9edMKfvIwXl3JGIiyTY g
Source: Shibburn

This decrease in token destruction has triggered caution among traders. Burn rate trends are often viewed as a gauge of deflationary progress. A falling rate may reduce investor confidence in SHIB’s supply control mechanisms. Analysts warn that continued decreases could slow bullish sentiment in the near term.

The combined effect of price consolidation and falling burn activity is keeping SHIB in a wait-and-see zone. Technical analysts agree that bulls must reclaim the 200-day EMA for any meaningful upside. In contrast, failure to hold above the 20-day and 100-day EMAs could lead to renewed bearish pressure. 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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