Shiba Inu dropped nearly 2% on Monday, extending its 7% decline from the previous week as softening market activity offset supply-side reductions. Despite large-scale token destruction, broader retail sentiment for the asset remains under pressure in the near term.
Token Burn Fails to Lift Sentiment
Data from Shibburn shows that 83.83 million SHIB tokens were burned on Sunday. While burning reduces the circulating supply and typically implies easing selling pressure, the market response has remained muted due to weak retail participation and lingering bearish momentum.
Decline in Open Interest and Volume
CoinGlass data indicates that SHIB Open Interest fell 13% over a 24-hour period to $42.80 million, reflecting lower positional buildup among traders. Trading volume experienced a sharper contraction, dropping 56% to $71.27 million. Concurrently, the funding rate dropped to 0% from 0.0092% the previous day, pointing toward subdued market engagement.
Technical Resistance and Support Levels
The immediate overhead resistance for SHIB sits at the 50% retracement level of $0.00000538. A decisive close above this threshold could pave the way toward the 23.6% retracement level at $0.00000607. Conversely, a drop below the 78.6% retracement level at $0.00000462 risks pushing the price down toward the previous swing low of $0.00000405.
Momentum Indicators
The Relative Strength Index stands at 57, maintaining a neutral-to-bullish posture as it consolidates slightly above the midline. Meanwhile, the Moving Average Convergence Divergence indicator holds above its signal line alongside declining positive histograms, reinforcing a neutral outlook.
Broader Cryptocurrency Market Context
Across the wider digital asset market, Bitcoin, Ethereum, and Ripple stabilized on Monday following losses of 2.8%, 3.55%, and 2.35% respectively during the prior week. BTC trades below key resistance, while ETH consolidates between its 50-day and 100-day Exponential Moving Averages. Cardano trades near $0.187 following a 14% weekly surge. Meanwhile, Bitcoin has drifted lower toward $63,000 amid mixed market conditions influenced by events such as a Coldcard wallet exploit involving around 1,300 BTC and shifting geopolitical developments.
