- SHIB burn activity stalls as selling pressure keeps prices under stress
- Zero token burns deepen supply concerns amid Shiba Inu market weakness
- Heavy exchange selling continues while SHIB struggles to defend key support
Shiba Inu faced renewed downside pressure after on-chain data showed no token burn activity within the last 24 hours. According to Shibburn, the platform that monitors deflationary movements, the network recorded zero SHIB burned during this period.
This absence of burns surfaced as the token struggled to regain stability amid persistent selling activity. At the same time, market performance reflected weakening sentiment. SHIB declined from $0.000007348 to $0.000007126 during the burn-free window.
As of press time, the token traded near $0.000007144, representing a 2.05% drop. Consequently, Shiba Inu continued to lag behind the broader cryptocurrency market, where select assets attempted modest recoveries.
However, the lack of burn activity raised concerns within the community. The Shiba Inu ecosystem relies on burns to reduce circulating supply by sending tokens to inactive wallets. This mechanism often supports scarcity narratives during market downturns.
Without burns, supply pressure remained elevated while prices declined. Moreover, technical indicators failed to spark confidence. The Relative Strength Index dropped to 14, signaling oversold conditions. Despite this reading, buyers stayed cautious. Selling activity dominated trading sessions, preventing any sustained rebound attempts. Hence, market momentum continued to favor the downside.
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Exchange Supply and Selling Volume Intensify Market Stress
Additionally, exchange balances added to the growing challenges. More than 81.5 trillion SHIB tokens remain held across centralized exchanges. This volume frequently acts as a sell wall during recovery attempts.
Each upward move encountered resistance as traders opted to reduce exposure. Furthermore, trading volume suggested distribution rather than accumulation. Short-term traders continued to offload positions as prices weakened. This behavior forced SHIB to establish lower price levels after each decline. Consequently, volatility increased while recovery windows narrowed.
Significantly, investor sentiment weakened as burn inactivity persisted. Market participants closely track burn data during periods of falling prices. Without deflationary support, the circulating supply remained unchanged.
This imbalance added pressure to an already fragile price structure. Also, price action placed focus on the $0.0000070 support zone. Analysts observed that failure to hold this level could accelerate losses. A slide toward $0.0000069 remained possible if selling intensified further. Panic-driven moves could deepen the decline under current conditions.
In the broader picture, ongoing supply concerns reduced optimism around near-term recovery. The combination of zero burns, elevated exchange balances, and sustained selling limited upside potential.
Market participants continued to monitor whether support levels could withstand the ongoing pressure. Shiba Inu remained under strain as deflationary activity stalled and sellers maintained control. Short-term direction now depends on whether selling pressure eases and on-chain dynamics improve.
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