Shiba Inu (SHIB) price has dropped to a crucial support level this week

Shiba Inu (SHIB) price has dropped to a crucial support level this week as whale selling and network activity fall.

Shiba Inu (SHIB) price has dropped to a crucial support level this week as whale selling and network activity fall.

Shiba Inu price fell to a crucial support level this week as whale selling and network activity fell. A 35% crash could follow if this support is lost.

Shiba Inu (SHIB) price has dropped to a crucial support level this week as whale selling activity and network growth fell.

Shiba Inu price dropped to a crucial support level this week as whale selling activity and network growth fell. Another 35% crash could follow if this support is lost, taking the token to its lowest point in 2023.

The price of SHIB is currently at $0.00001263, down 27% from its highest point this year and 62% lower than its November high.

The recent drop in crypto market valuation due to BTC’s price drop has attributed to SHIB’s descent. SHIB’s 24-hour volume dropped by 9% to $200 million.

Shiba Inu Price Technical Analysis

The three-day chart shows that the Shiba Inu price has dropped 28% since the May 10 high of $0.00001758. This crash has pushed SHIB to revisit the ascending trendline connecting the swing lows formed on October 23, March 2025, and April 2025. The recent bounce shows the importance of this support.

Additionally, the aforementioned SHIB price crash pushed it below the 50-day moving average at $0.00001476, indicating that bears are in control. The Relative Strength Index (RSI), which measures the speed and change of price movement, is also pointing downwards below the neutral point at 50, highlighting the bearish momentum in the market.

Similarly, the two lines of the Relative Vigor Index (RVI) have formed a bearish crossover pattern and moved to their lowest level since March this year. The RVI indicator compares the closing price of an asset to its trending range and then smooths the result.

Therefore, a volume-supported move below the ascending trendline could trigger a 35% crash to $0.0000084, the lowest level since January last year.

The alternative scenario is where Shiba Inu price bounces back above the ascending trendline. If this happens, the initial support will be at $0.00001754, its highest point in May. A move above that level will confirm the bullish breakout. In such a case investors can refer to a previous CoinGape article that outlines a potential 20% rally for Shiba Inu token.

SHIB Burn Rate Surges But Risks Remain

One key catalyst for Shiba Inu price is that the burn rate has staged a strong comeback today. Shibburn data shows that the burn rate jumped by 112,839% to 102,141,121 SHIB on Thursday. This increase was due to one user moving 97,560,800 million coins to a burn address.

Most of the other on-chain metrics are not bullish on Shib Inu. For example, Santiment data shows that the supply of SHIB tokens held by whales has been in a free fall this year. It has dropped to 710 trillion, down from 736 trillion in March.

Another data shows that the network growth has plummeted to the lowest level in over a year. It dropped to 445, down from 4,812 on January 19. This metric examines the number of new addresses created within a specific period.

More metrics, such as social dominance and daily active addresses, have been in a downward trend. In most cases, cryptocurrencies rally when these metrics are rising.

Summary

Shiba Inu price has been under pressure in the past few months. While the surge in burn rate is a positive catalyst, it may not be enough to propel it higher, given the weak on-chain metrics and technicals. For a long-term outlook, read Shiba Inu price prediction 2025.

Frequently Asked Questions (FAQs)

1. Will Shiba Inu price crash by 35% soon?

2. Is the rising SHIB burn rate a bullish catalyst?

3. Which are the bearish on-chain metrics?