Shiba Inu has entered a correction phase over the past 10 days, with its market cap sliding below $3 billion. The token surged 53% from a low of around $0.00000410 to a three-month high of $0.00000627, but has since declined by 19%.
At the current juncture, bears are testing the strength of bulls to maintain SHIB above a slanting support level for the fourth time. Price momentum indicators show bearish pressure, with red MACD bars and 2.75 billion SHIB sold according to Cumulative Volume Delta data.
The token's hourly burn rate surged 100% with 61.45 million SHIB permanently removed in a single transaction. Over the past seven days, 160.5 million tokens have been burned. However, the weekly burn rate has declined 59% from its peak.
Despite ongoing token burns reducing supply, capital inflows appear limited. Exchange Withdrawing Transactions fell from 522 to 100 in just two days, indicating minimal new money entering the market. Shiba Inu's daily trading volume of $41.25 million significantly trails competitors like Dogecoin at $715 million and Official Trump at $234 million.
The broader memecoin sector showed a 2.68% climb in total market cap, though daily trading volume across all memecoins fell 29% to around $2.03 billion. Whether Shiba Inu can hold its $0.000005 support level may depend on renewed capital inflows and broader sector momentum.
