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SHIB remains in downtrend, trading below key moving averages and strong resistance levels.
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Open interest declines sharply as traders reduce leverage and stay cautious.
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Massive 410 trillion token burns support long-term scarcity despite weak price action.
Shiba Inu continues to struggle under heavy selling pressure as market sentiment stays firmly bearish. Traders have steadily reduced exposure while price action fails to recover lost ground. Even after massive token burns that removed hundreds of trillions from circulation, momentum remains weak. The meme coin now trades in a fragile technical zone with little sign of reversal. Buyers have yet to step in with enough strength to challenge the ongoing downtrend.
$1.95 million Shiba Inu coin alert: What this whale's sudden move means for SHIB investors $SHIB https://t.co/NeExNm2wiC
— U.Today (@Utoday_en) June 5, 2026
Technical Breakdown Keeps Sellers in Control
SHIB currently trades near the $0.00000485 support level after a long and steady decline from earlier highs. The token recently broke below key Fibonacci retracement levels, which strengthened bearish sentiment across the market. Price action also remains below major moving averages, including the 20-day, 50-day, 100-day, and 200-day exponential lines. That alignment confirms a strong downward trend with limited bullish participation.
Resistance now sits near $0.00000526, a level that previously acted as support before the breakdown. Above that, additional barriers appear at $0.00000555, $0.00000581, and $0.00000613. Each level represents areas where sellers may re-enter and defend the downtrend. A break above those zones could shift momentum, but buyers have not shown enough strength yet. On the downside, pressure builds quickly if SHIB loses current support.
A break below $0.00000485 may push price toward $0.00000450. Further weakness could expose the $0.00000400 zone if market conditions worsen. Traders continue watching these levels closely as volatility compresses. Bollinger Bands suggest SHIB now trades near the lower boundary of its range. That setup often signals oversold conditions. However, buyers still lack confirmation of a reversal. Market structure remains weak, and sentiment continues leaning negative.
Derivatives Weakness and Supply Cuts Tell Two Stories
Open interest in SHIB futures paints a cautious picture. Earlier cycles saw readings above $500 million during strong rallies. Traders increased leverage and chased upside momentum during those phases. Today’s environment looks very different. Open interest now sits near $40.9 million, marking a steep decline. That drop reflects reduced speculative appetite and ongoing position unwinding.
Traders appear hesitant to re-enter aggressively. Many prefer waiting for clearer direction before committing capital again. Occasional spikes in activity still appear, but they lack consistency. The market currently shows low conviction and limited risk-taking behavior. That hesitation keeps price action stuck in a narrow and uncertain range. Despite weak momentum, SHIB’s long-term supply narrative continues evolving.
The ecosystem has removed more than 410 trillion tokens through burn transactions. That represents roughly 41% of the original supply base. Around 589 trillion tokens remain in total existence, while circulating supply sits near 585.6 trillion. These reductions aim to support long-term scarcity. However, short-term price action continues to ignore that structural shift.
