Shiba Inu (SHIB) fell around 5% on Wednesday as a sharp increase in token burns failed to offset broader crypto weakness and pressure from leveraged traders.
The decline came just days after SHIB again failed to break the $0.000006 resistance zone, which has repeatedly capped recent rebounds. That level was also highlighted in a recent SHIB price prediction, where the $0.0000055–$0.0000056 area was identified as the next important support if buyers lost momentum.
That downside scenario is now playing out.
Massive Burns Fail to Support SHIB
Shiba Inu’s burn rate surged sharply in recent days, helped by a single transaction that removed nearly 298 million SHIB from circulation.
But the price response has been weak.
That continues a pattern already visible earlier this month. SHIB’s burn rate previously jumped more than 17,000%, yet the token still failed to establish a breakout above $0.000006.
The reason is scale.
With roughly 589 trillion SHIB still circulating, even hundreds of millions of tokens burned represent only a tiny fraction of total supply. Burns can support the long-term scarcity narrative, but short-term price action remains much more sensitive to demand, liquidity and broader crypto sentiment.
The contrast is especially notable because SHIB had recently been recovering even when burns collapsed. A previous burn-rate analysis showed daily burns dropping more than 91% while the token continued to hold near short-term support.
Crowded Longs Add to the Selling Pressure
Derivatives positioning appears to have amplified Wednesday’s decline.
Around $285,000 in SHIB positions were liquidated over 24 hours, with roughly $271,000 coming from longs and only about $14,000 from short positions.
That means around 95% of liquidations came from traders betting on higher prices.
The imbalance matters because a crowded long market can accelerate declines. When SHIB falls through support, leveraged bullish positions are automatically closed, creating additional sell orders and pushing the price lower.
