Shiba Inu is entering the new week in a fragile position. After being rejected near the $0.00000668 level, the price pulled back and is now hovering around a key support zone. Beyond technical factors, attention is also shifting to declining token burn activity and derivatives data, both pointing to growing bearish pressure.

Technical Picture Weakens as Resistance Holds Firm

On the daily chart, SHIB continues to show a bearish structure. The price remains below all major exponential moving averages, both short- and long-term, which are now clustered above the current price and acting as a strong resistance zone.

The Parabolic SAR indicator also confirms that the downtrend remains intact. The area between $0.00000660 and $0.00000680 has repeatedly rejected price advances, establishing itself as a clear ceiling.

While the recent bounce from around $0.00000554 suggests some attempt at stabilization, it still appears weak without stronger trading volume.

SHIB Daily Price Action (Source: TradingView)

Key Levels to Watch

The market is currently balanced between two scenarios, with these levels likely to determine the next move:

  • Resistance: $0.00000592 and $0.00000660

  • Support: $0.00000554 and $0.00000510

Price reactions around these zones will be critical in defining whether SHIB can recover or continue declining.

Burn Rate Drops Sharply, Weakening a Key Bullish Factor

Another negative signal comes from the token burn mechanism. After a spike on May 19, when over 21 million SHIB were burned, activity quickly declined. Within days, burn volume dropped to around 2 million tokens — a nearly 80% decrease.

At this pace, the impact on supply reduction is minimal. The mid-May spike appears to be an isolated event rather than the start of a sustained trend, removing one of the few bullish catalysts for SHIB.

Derivatives Market Favors Bears

Data from the futures market further reinforces the bearish outlook. Trading volume has increased by over 20%, but open interest has only seen a modest rise, suggesting short-term speculation rather than strong conviction.

The long-to-short ratio clearly favors sellers, with short positions dominating. Additionally, liquidations of long positions significantly exceeded those of shorts over the past 24 hours, confirming ongoing downward pressure.

SHIB Derivatives Analysis (Source: Coinglass)

What’s Next? Support Will Be Crucial

The short-term outlook remains uncertain, but the key factor will be whether SHIB can hold current support levels.

A move back above $0.00000592 could open the door for a recovery toward higher resistance zones. On the other hand, a breakdown below $0.00000554 would likely trigger further losses, with the next targets around $0.00000510 and lower.

Shiba Inu is now at a sensitive turning point, where technical structure, declining burn activity, and bearish sentiment could shape its direction in the coming days.

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