## When Burn Hype Fades: What's Really Driving SHIB Price Now?

The narrative around SHIB has shifted dramatically. According to Shibburn data, approximately 410 trillion SHIB tokens have been permanently removed from circulation through burns—a supply-reduction mechanism that previously helped support price floors. Yet with zero tokens burned in the past 24 hours, this traditional bullish factor has effectively evaporated. More significantly, SHIB price is no longer dancing to the tune of social media sentiment or retail optimism. The meme coin's recent movements tell a different story entirely: one dominated by leverage positioning, forced liquidations, and thin order book dynamics.

## The Leverage Problem: How Small Moves Trigger Big Damage

Market data from CoinGlass reveals the real pressure points for SHIB traders. Long positions face maximum vulnerability around $0.00777—a level where cascading liquidations would trigger automatically. Short sellers, meanwhile, are uncomfortable closer to $0.0086. With SHIB currently trading near $0.00816, the danger zone for longs is uncomfortably close.

This is particularly brutal in meme coin ecosystems where liquidity is sparse. The math is unforgiving: SHIB only needs to decline roughly 5% from current levels to start wiping out leveraged long positions. In a market where participants are stacked on thin order books, such a move would cascade into a liquidation avalanche, pushing price lower as forced sellers emerge. The feedback loop is vicious and fast.

## Technical Setup Warns of Deeper Risk

The weekly chart tells an instructive story. SHIB is currently positioned at a critical support level that has been tested repeatedly. A downtrend that has been in place for months finally meets this floor—but the technical momentum is weak. The RSI indicator hovers near oversold territory (suggesting some capitulation has occurred), yet the MACD remains below the neutral line, indicating that bullish momentum hasn't genuinely reestablished.

This combination points to risk before recovery. If the support zone breaks decisively, technical targets suggest an additional 20% downside is possible before any meaningful demand reappears. This aligns eerily with the $0.00777 liquidation cluster mentioned earlier. Conversely, any recovery would need to first reclaim the resistance zone shown on the chart—only then could SHIB potentially challenge the higher $0.00005 region again.

## The Verdict: From Sentiment to Structure

SHIB's price action has transitioned from being driven by community enthusiasm and supply dynamics (via burns) to being controlled by leverage structure and forced liquidation mechanics. While meme coins may endure as a market category, the fuel that powered SHIB's recent run has fundamentally changed. Understanding these new market mechanics is now essential for anyone trading the asset.