Key Insights:
- Shiba Inu burn rate plunged 98.94% to just 305,490 tokens, weakening the deflation narrative amid massive circulating supply pressure.
- Open interest declined 7.41% while $46.84 million long liquidations confirmed bulls were trapped during the recent failed breakout attempt.
- SHIB trades below major EMAs as tight Keltner Channels signal imminent volatility expansion with support at $0.00000593 under pressure.
Shiba Inu trades near $0.00000601 after failing to hold gains above $0.00000650. The token rose 0.33% over four hours but continues to move inside a tight range. Momentum has slowed as on-chain and derivatives data show fading participation.
Data from Shibburn shows the burn rate dropped 98.94% over the past 24 hours. Only 305,490 SHIB moved to dead wallets during that period.
The largest single transaction burned 10 million tokens, while most transfers involved only a few hundred coins. So far, 410.75 trillion SHIB have been removed from the original supply. However, 585.47 trillion tokens still circulate out of a 999.98 trillion maximum supply.
Deflation Narrative Weakens
The sharp fall in burn activity reduces the immediate supply impact. Previously, burn spikes exceeded 470%, which supported short-term optimism. Now, the slowdown limits any meaningful reduction relative to the vast supply.
Consequently, traders appear less convinced that burns alone can drive price expansion. Market activity reflects that hesitation.
According to Coinglass, open interest declined 7.41% to $57.87 million. Trading volume also fell 7.53% to $162.23 million.
Long to short ratios on OKX remain elevated at 2.18, showing retail positioning still leans bullish. However, top traders hold $4.17 million in short positions against $2.13 million in longs on shorter time frames.
Liquidations Confirm Bull Trap
Liquidation data adds further clarity. Over the past day, $46.84 million in long positions were wiped out compared with $4.81 million in shorts.
That imbalance shows leveraged buyers entered near recent highs and exited quickly as price slipped. Additionally, falling open interest and volume suggest traders are closing positions rather than opening new ones.
Source: TradingView
On the four-hour chart from TradingView, SHIB holds slightly above the Supertrend at $0.00000593. However, price remains below the 20, 50, 100, and 200 EMAs, which now act as resistance layers.
The 0.5 Fibonacci level at $0.00000662 stands as immediate upside resistance. Support rests near $0.00000582, with tighter compression visible on lower time frames.
Volatility Compression Builds
Two-hour charts show price confined inside narrow Keltner Channels between $0.00000588 and $0.00000623. Chaikin Money Flow reads 0.07, reflecting weak buying pressure.
Significantly, SHIB rebounded 18% from February lows near $0.00000510 but still trades well below January highs above $0.00000814. Price now balances between compressed volatility and weakening participation.
