SHIB Burn Rate Crashes 63%—Is a Price Explosion Coming?
Will SHIB price hit $0.000045 this month?
Shiba Inu (SHIB) continues to face downward pressure, even after bouncing from overnight lows. At the time of writing, SHIB is trading near $0.00001265, having recovered from a low of $0.00001234 during Asian trading hours. However, the overall downtrend remains intact, with trendlines from the May 12 and May 23 highs and the May 17 low showing a persistent bearish structure.
Read Coinpedia’s Shiba Inu Price Prediction
Burn Rate Collapse Raises Concerns
One of the biggest setbacks for SHIB this week is the 63% drop in its daily burn rate. Token burning is a key part of SHIB's deflationary model, aimed at reducing supply and increasing scarcity. A steep decline in burn activity undermines this strategy, casting doubt on SHIB's deflationary appeal.
Meanwhile, trading volume has surged by 78%, signaling heightened market activity—possibly driven by speculation and overleveraged trades.
Key points:
Burn rate dropped by 63%, weakening deflation narrative
Trading volume rose 78%, indicating strong trader interest
Despite this, SHIB may find support around the $0.000012 and $0.000013 price levels, according to on-chain indicators.
Also Read: Bittensor Price Prediction 2025, 2026 – 2030
Derivatives Data Shows Reversal Possibility
Derivatives market data adds another layer of insight. Over $383,000 in SHIB perpetual contracts were liquidated in the past 24 hours—mostly overleveraged long positions. As these positions closed, shorts gained dominance, supported by negative funding rates and rising open interest on SHIB contracts.
This shift increases the possibility of a short squeeze. If it occurs, SHIB could break out of its downtrend and aim for higher levels. Past rallies in March and April provide a strong precedent for such a move.
If bullish momentum returns, SHIB might revisit multi-week highs—and shiba inu price prediction models could again point toward the $0.000045 mark.