Liquidations added selling pressure, keeping SHIB under strong bearish pressure.
Shiba Inu (SHIB), one of the well-known meme cryptocurrencies, saw its price fall sharply during the weekend market sell-off after Bitcoin (BTC) dropped below $80,000 for the first time since April 2025.
The market crash caused panic across the market, and SHIB was one of the coins hit the most. Its price fell to $0.00000616, which is the lowest level it has seen since June 2023. After that, it made a small recovery and now trades for $0.0000069, up about 5% from the previous day. Trading volume also fell, sliding about 22% to roughly $167 million in volume in the last 24 hours.
SHIB falls as traders panic sell
The drop came during a period of weak sentiment across the crypto space. In recent months, many traders have closed their positions with meme coins facing heavy selling pressure. In fact, SHIB has lost more than 9.49% over the past seven days.
Liquidations also added to the decline. According to Coinglass, around $196,390 in long positions were wiped out in 24 hours as traders betting on a price going up were forced to sell. Futures trading volume fell 18% to around $221 million, while open interest surged 6% to $76.56 million. In short, there are mixed expectations among traders at the moment.
Burn activity slows sharply
Another major issue has been the slowdown in SHIB’s burn activity. Burning means sending tokens to dead wallets so they are removed from circulation. This is believed to create scarcity for the token, which could drive the price up.
Shibburn, a tracker that monitors the token’s burns, reported that on January 31, zero SHIB was sent to dead wallets, meaning no supply was removed. This was surprising because just two days earlier, the burn rate jumped over 500%. However, the burn rate has increased by 480% in the last 24 hours.
A single transaction alone removed 1,887,367 SHIB tokens, briefly giving investors some hope for stronger deflationary pressure. However, SHIB still has a huge supply. More than 585 trillion tokens are still in circulation, and trillions more are locked in staking.
Another concern is the drop in activity on Shibarium, the layer-2 network linked to Shiba Inu. According to DeFiLlama, Shibarium’s Total Value Locked (TVL) has dropped to about $393,000, the lowest level ever recorded. This is a steep fall from a peak of more than $6 million in December 2024, showing a decline of over 41% in the last 24 hours and about 93% in just over a year.
Lower TVL often points to reduced user activity and less capital flowing through the network.
SHIB taps 2023 support: can it recover?
SHIB is now trading in a price zone that previously acted as support before its rise in late 2023. This is also its lowest support level since 2021. The current price is showing the daily candle rejecting off the support level.
A solid bullish candle close above the level could spark a rally. Moreover, the 4-hour time frame also displayed multiple rejections, followed by an engulfing candle, suggesting a bullish move. Additionally, the Relative Strength Index (RSI) is currently at 40, while the moving average is at 36. This means the bears are still in control of the market.
In short, Shiba Inu may continue to face bearish pressure if the current price sentiment does not shift to bullish. A break below the current support zone could lead to a downtrend that could be hard to recover from.
Also Read: BitMine Boosts Treasury With 41,000+ ETH as Ethereum Prices Drop
Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.
