What happened?
Over 7 million SHIB tokens were burned in the last 24 hours while the token also lost about 10.7% over the past week after breaking a key trendline. Trading volume jumped roughly 41% during that period, and the RSI slipped below its 14-day moving average, signaling selling pressure. Other meme coins like Dogecoin and Pepe also fell, indicating a broader market correction.
Who does this affect?
SHIB holders and short-term traders are most affected because burns change supply dynamics and price swings hit portfolios directly. Late buyers and speculators face higher volatility as the token could retest the $0.000010 support level before any recovery. The wider meme coin market and new projects in presale, like Maxi Doge, also feel spillover from shifting sentiment and trading flows.
Why does this matter?
Burns reduce circulating supply, which can ease selling pressure and support the price if demand stays steady, so increased burns are a bullish structural signal. However, breaking support and technical sell signals raise the risk of further downside in the short term, which could deter marginal buyers. If volumes keep rising and burns accelerate, scarcity could amplify gains during the next uptrend, so market participants should watch volume, burn rates, and macro cues closely.