Shiba Inu Price Drops 9% as $6.7B Support Faces Test

Key Insights:

• Shiba Inu is trading at $0.00001164 after falling over 9% in the past week.
• Analyst flags $6.7B market cap as key SHIB support zone that historically triggers rebound phases.
• If SHIB breaks below $0.00001054, the next major support could be around the $0.00000630 level.

Shiba Inu (SHIB) continued its correction trend as the price slipped to $0.00001164, marking a 9% decline over the week. Analysts flagged a critical support zone that could define the meme coin’s short-term direction.

SHIB’s performance has been weighed down by declining trading activity, reflecting lower participation from both retail and institutional players. The bearish structure remained intact, characterized by lower highs and lower lows on the chart.

Shiba Inu Price Dipped Over 9% in a Week

Over the past days, Shiba Inu price has been characterized by bearish activity which has kept the meme coin within the thin margin of 0.00001142 and 0.00001229. As of this writing, Shiba Inu crypto traded at 0.00001164 with a decline of 1.02% in the past 24 hours and a 9% decrease in 7 days.

Furthermore, technical indicators displayed a downward trend of decreasing highs and decreasing lows. The market structure presents bearish pressure and there is no confirmation in the short term.

The existing range-bound SHIB performance has placed the cryptocurrency at a vital pivot point. As a result, with support or resistance levels, interactions are likely to reshape the overall market sentiment.

$6.7 Billion Market Cap Identified as Key Support Zone

According to a recent analysis by a market analyst, “Pepe is Friend,” Shiba Inu market cap has now approached a zone that has historically served as a foundation for recovery. The analyst points to the $6.7 billion market cap level, a zone that previously supported price rebounds when bears failed to maintain control.

In April 2024, Shiba Inu crypto market capitalization was briefly below $6.08 billion. The rebound was a result of the subsequent failure of sellers to push the price lower.

More so, Pepe is Friend noted that the top meme coin’s inability to maintain bearish momentum in that instance created a launching point for renewed interest and price surge. The same market cap level now presents a potential base for future consolidation or upside movement, especially if sell-side pressure weakens.

Next Major SHIB Support Around $0.00000630

Although the level of $6.7 billion remains in play, the analyst also highlighted another lower level that may come into play in case the current level breaks down. A break-or-make price has been established at $0.00001054. In case Shiba Inu price dips below this mark, the bullish sentiment would be invalid, and the coin is likely to drop further.

In the event of such a breakdown, the next major support is projected near the $0.00000630 level. This area has historically seen increased buying interest and could attract longer-term investors seeking discounted entries.

Shiba Inu Burn Rate Records a Complete 24-Hour Halt

To add to this uncertainty is the most recent information in regards to Shiba Inu crypto burn rate. During the last 24 hours, the burn rate has been reduced by 100 percent, and no deletion of tokens has been done. This is unlike in the past days when periodic token burning was achieved, which added a deflationary perspective and investor hopes in the long-term value.

Most recently, Shiba Inu burn rate surged by over 276,000% in just 24 hours, eliminating more than 116 million SHIB tokens.

This pause followed a spike earlier in June when the burn rate surged over 276,000% in one day, removing more than 116 million SHIB tokens. The halt in burns has weakened deflationary sentiment among holders who view supply reduction as a key driver of price stability.

The sudden inactivity in token burns raised concerns among long-term SHIB investors. With no tokens removed from circulation during a volatile period, market confidence remained fragile.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.