SHIB Holds Weak Range as Burn Rate Drops and Pressure Builds

Key Insights

• SHIB remains within a long-standing descending channel, with price stuck in the lower range and unable to break persistent resistance levels.

• The burn rate dropped sharply, removing a short-term support factor and reducing retail-driven momentum seen earlier during increased token burn activity.

• Derivatives data shows rising open interest with lower volume, indicating quiet positioning rather than strong conviction-driven trading activity in the market.

Shiba Inu traded at $0.0000059 on April 3, holding within the lower section of a descending channel that has guided price action since September 2025. Price continues to move without strong momentum as resistance levels remain intact.

Moreover, the broader trend reflects sustained weakness, with the asset unable to escape a structure that has steadily compressed upside attempts over several months.

Descending Channel Defines Market Direction

The channel, formed after the September peak near $0.000015, continues to dictate trading behavior. The upper boundary now sits around $0.0000075, while the lower edge approaches $0.0000040 through April.

Additionally, the price has remained in the lower third of this range since February, signaling limited buying strength. Consequently, the structure continues to favor downside pressure unless a clear breakout develops.

Moving Averages and SAR Limit Recovery

All key exponential moving averages remain above current price levels, reinforcing resistance. The 20-day EMA stands at $0.0000591, followed by higher averages extending toward $0.0000818.

Source: TradingView

However, the Parabolic SAR at $0.0000627 continues to cap upward movement. Every rally over the past six months has stalled below this level, keeping the broader trend unchanged.

Burn Rate Decline Removes Short-Term Support

The burn rate dropped sharply by 90.21% in the past 24 hours, falling to 167,246 SHIB. This decline follows a brief surge earlier in the week that had increased market attention.

Significantly, while over 41% of the initial supply remains permanently removed, daily burn activity lacks consistency. As a result, its influence on short-term price action remains limited.

Trading volume fell by nearly 14% to $123.46 million, while open interest rose slightly to $53.04 million. This combination suggests that traders are adding positions without aggressive participation.

Meanwhile, the long-to-short ratio sits slightly above neutral. Shorts recorded higher liquidations than longs over the past day, aligning with a modest price increase during the same period.

Key Levels Continue to Shape Outlook

Immediate resistance stands at the 20-day EMA, while the SAR level remains the primary barrier for any sustained recovery. A move above these levels could shift momentum toward the channel midpoint.

However, failure to hold near current levels may push the price back toward the lower boundary near $0.0000400. Consequently, the established channel continues to guide expectations into April.