Community-driven token burning efforts have intensified even as the Shiba Inu cryptocurrency battles volatile price movements and a weakening technical outlook.
The latest surge in burns has boosted optimism among loyal supporters, but analysts warn that a looming bearish pattern could pressure the price in the weeks ahead.
SHIB burns spike as whales step in
Data from Shibburn shows that the Shiba Inu burn rate jumped by 3,297% in 24 hours on August 30.
Nearly three million tokens were permanently removed from circulation during that time, a move intended to reduce supply and strengthen long-term value.
Two large transactions accounted for most of the activity, with one burn eliminating more than 1.33 million SHIB and another wiping out just over 1.00 million. Both transfers came from anonymous wallets, suggesting that whales remain engaged in Shiba Inu’s deflationary campaign.
Despite the daily spike, weekly data painted a more subdued picture. The total burn for the week fell by more than 80% to just under 12 million SHIB, showing that enthusiasm remains uneven.
Even so, the Shiba Inu team encouraged holders by posting, “We’re down, not done,” as the community looked for positive signs during a volatile stretch.
Shiba Inu price tries to recover after a steep drop
The increased burn activity arrived as SHIB’s price attempted to rebound from a sharp sell-off earlier in the week.
On Monday, the memecoin dropped by nearly 12% before recovering significantly throughout the week.
At the time of writing on Saturday, SHIB was trading around $0.00001239, marking a modest 1.5% daily gain but still down about 6% over the past seven days.
Market data from CoinGecko shows that SHIB maintains a market capitalisation of about $7.29 billion, ranking it as the 30th largest cryptocurrency.
Trading volume stood at $272 million in the past 24 hours, a figure well below levels seen during peak demand cycles.
Technical analysis shows a troubling pattern
While the short-term bounce gave some relief to holders, the broader technical picture remains fragile.
Charts reveal that Shiba Inu has been forming a symmetrical triangle pattern following its steep drop from December 2024 highs.
This formation is often considered part of a bearish pennant, signalling the possibility of further losses if sellers remain in control.
In addition, the token has struggled to stay above the 50-week smooth moving average and continues to trade below the Ichimoku cloud, both of which are bearish technical signals.
A sustained breakdown could send the price toward the critical support zone at $0.0000069, more than 40% below current levels.
Fundamentals point to weaker demand
Beyond the charts, Shiba Inu’s fundamentals have shown signs of stress.
Daily trading volumes are subdued compared to smaller meme coins like Bonk and Pepe.
In addition, futures data from CoinGlass shows open interest has fallen to $176 million from more than $500 million earlier this year, indicating reduced speculative activity and liquidity.
The weighted funding rate has also turned negative, suggesting that traders expect further declines in price.
At the same time, the Shibarium layer-2 project has failed to gain meaningful traction, with less than $2 million in total value locked and no stablecoins circulating on the network.
Institutional interest has also been limited. Whales and so-called “smart money” wallets have largely stayed away from accumulating SHIB in recent weeks, while no applications for a spot SHIB ETF have been filed this year.
Shiba Inu outlook remains uncertain
Shiba Inu’s latest surge in token burns demonstrates the community’s ongoing commitment to reducing supply and supporting long-term growth.
However, the mix of bearish technical patterns, weak fundamentals, and limited adoption raises questions about whether these efforts will be enough to sustain price stability.
For now, SHIB remains caught between its resilient base of supporters and broader market headwinds.
How the balance shifts in the coming weeks will determine whether the recent burns mark the start of renewed momentum or simply a temporary boost in the middle of a prolonged decline.
The post Shiba Inu price jumps as burns soar 3,297%, but risky chart pattern forms appeared first on Invezz