Shiba Inu, the popular meme coin, is facing significant challenges as its crucial token burn mechanism has stalled, leading to increased supply pressure and a continued decline in its market price. This recent inactivity in burns, designed to create scarcity and bolster value, arrives at a critical juncture where the asset is already struggling against bearish momentum, raising concerns among its investor community.
Shiba Inu's Burn Mechanism Falters Amid Price Slump
The Shiba Inu ecosystem heavily relies on its token burn mechanism to reduce the circulating supply of SHIB, a strategy intended to create scarcity and positively influence its price outlook. However, recent data from Shibburn revealed a troubling development: zero SHIB tokens were burned in the last 24 hours. This halt in deflationary activity comes as SHIB is already battling a persistent bearish trend, with its price falling by over 2% and struggling to find upward momentum, despite previous attempts at rebound. The absence of burns directly contributes to mounting supply pressure, making price recovery an uphill battle.
Supply Pressure Mounts, Rebound Hopes Diminish
The lack of token burns exacerbates the supply issue, casting a shadow over SHIB’s immediate future. Although the Relative Strength Index (RSI) recently indicated oversold conditions, suggesting a potential rebound, heavy sell pressure from holders and cautious long-term traders are negating these signals. Investors are selling off assets amid the continuous decline, worsening the prospects for a price recovery. Without the supply reduction from burns, hopes for a significant rebound are fading, with analysts warning of potential price slips below the critical $0.0000069 level if panic-selling intensifies. The $0.0000070 support level is now crucial for SHIB to maintain stability.
Persistent Exchange Supply Poses Ongoing Challenge
Beyond the immediate burn inactivity, a persistent structural challenge for Shiba Inu is the substantial volume of SHIB held on exchanges. With over 81.5 trillion SHIB tokens circulating across various platforms, a significant "sell wall" frequently emerges, stifling any sustained rally attempts. This high exchange supply means that trading volume is often dominated by users dumping the asset rather than accumulating it, making every sell-off a hurdle that forces the meme coin to reset at a lower price point. This combination of halted burns and a pervasive exchange supply suggests that the once-optimistic outlook of Shiba Inu "erasing a zero" before 2025 has grown considerably slimmer.
