Shiba Inu faces mounting pressure from leveraged positions as token burns reach a standstill. The meme coin's price trajectory now depends heavily on liquidation zones rather than community-driven hype. Data from Shibburn reveals that approximately 410 trillion SHIB tokens have been permanently removed from circulation. The burn mechanism typically supports price appreciation by constraining supply. Recent activity shows zero tokens burned in the past 24 hours. This development removes a key upward catalyst from the equation. The token's price behavior has shifted dramatically. Social media sentiment and retail enthusiasm no longer drive significant moves. Instead, leveraged trading positions and forced liquidations dictate short-term direction. This marks a departure from the community-focused narrative that previously characterized SHIB trading. Critical Liquidation Zones Emerge CoinGlass data highlights two dangerous price levels for traders. Long positions face maximum liquidation risk at $0.00777. Short sellers encounter their heaviest exposure near $0.0086. At the time of writing, SHIB is trading at around $0.000007087, down 5.87% in the last 24 hours. SHIB price chart, Source: CoinMarketCap The proximity to long liquidation levels creates immediate downside risk. A price decline of less than 5% could trigger cascading liquidations. Thin liquidity in meme coin markets amplifies this vulnerability. Small sell orders can generate outsized price impacts when leverage ratios remain elevated. Market participants holding long positions with high leverage face acute pressure. The narrow distance between the current price and liquidation levels leaves minimal room for adverse moves. Any sudden selling could initiate a liquidation cascade that pushes prices lower rapidly. Technical Indicators Signal Weakness The weekly chart places SHIB near long-term support. A descending trend line has guided prices downward for several months. The token now tests the lower boundary of this technical structure. Momentum indicators paint a concerning picture. The Relative Strength Index hovers near oversold territory. The MACD remains below the neutral line. These readings suggest limited energy for an immediate recovery rally. Technical analysis points to substantial downside risk if support breaks. The chart structure suggests a potential 20% decline from current levels. This projected move aligns with the liquidation cluster near $0.00777. A breakdown below support could accelerate as forced selling adds to organic sell pressure. Recovery scenarios require reclaiming key resistance. The token must first break above the red resistance zone visible on longer timeframes. Success at this level could enable a push toward the $0.00005 region. However, momentum indicators suggest this path faces significant obstacles.
