Why Is SHIB Going Down? 819 Million Burned Tokens and a 3% Price Drop Explained!

Amid a tumultuous crypto market, the Shiba Inu community has continued its aggressive token burn strategy and has seen over 15 million SHIB recently removed from circulation. These recent burns bring the total burned to 819 million SHIB as part of the larger plan of lowering supply and perhaps increasing the SHIB price. Still, against all odds, the SHIB burn rate has declined by 60.65% within the same time frame as a stagnant Shibarium TVL and a slight dip in price by 3%. With bearishness creeping into the investors’ minds, one is left wondering whether burns and upgrades in the ecosystem can be a candle in the dark for SHIB’s price movement.

Shiba Inu’s Token Burn Strategy Amid Market Volatility

The Shiba Inu community continued its aggressive token strategy to burn the tokens by burning 15 million SHIB from circulation. Consequently, the total amount of SHIB burned has reached 819 million. Yet, surprisingly, the Shiba Inu burn rate fell by 60.65% despite the earlier spike in demand for burning. Such a decline in the burn rate coincides with TVL on Shibarium, which, judging by the current bearish curve, suggests a decline in investor confidence. SHIB also experienced a price decline of 3%, which mirrors the general market.

Historically, the shiba inu burn rate has seen considerable swings, with more immediate surges peaking at 104,201%. Such burns made little impact on SHIB price action mainly due to excessive total supply. The project behind Shiba Inu, Shibarium, a layer-2 launchpad, does shed light on milestones such as above $1 billion transaction volume; TVL on the other hand remains stagnant, a serious drawback toward any recovery on price for SHIB.

While this gives long-term hope to investors regarding the effectiveness of these token burn strategies, short-term market dynamics suggest any cautious optimism. It is going to be key for Shiba Inu to continue garnering investor interest amid volatile conditions in crypto if it is to see any future performance.

Shib Price Analysis Of The Last 24 Hours

The MACD on April 2nd showed a death cross that formed a downward channel. In both cases, the RSI pointed to extremely overbought situations before signaling the possibility of golden crosses marking future upward trends. The highest price level reached resistance at around 0.00001245 while the lowest price mark created a support base at 0.00001182.

Chart 1, analysed by anushrivarshney2613, published on TradingView, April 4, 2025

There were both death crosses and golden crosses throughout this whole time, reflecting market indecision with periods of bullish movement alternating into bearish momentum. Typically overbought RSI triggered retracements off resistance levels. Currently, however, SHIB is trading around 0.00001242. When analyzed with data of Shiba Inu burn and Shibarium TVL, that chart makes it quite hard to believe where SHIB would exactly go. 

What’s Next For Shiba Price?

As the Shiba Inu community continues its aggressive token burn strategy, the future of SHIB remains dynamic. Despite the shiba inu burn, the price has faced challenges due to stagnant Shibarium TVL and declining burn rates. If the burn mechanism is able to attract demand and further ecosystem developments, it stands a good chance of upward price growth for Shiba Inu. Various analysts have conflicting opinions, with a majority sensing more volatility to come, while a minority predicting positive trends. In sum, present-day challenges and new trends in the market will determine if SHIB will make it over the long run.