Shiba Inu (SHIB) has come under selling pressure, declining by 10% over the past three days as the broader crypto market experiences a cooldown. The drop has brought SHIB’s price to approximately $0.00001518, raising concerns about whether the asset can maintain support at the crucial $0.000015 level. A failure to hold this zone could open the door for a steeper correction toward $0.00001365 or even lower in the short term.

This correction follows an impressive rally where Shiba Inu surged by nearly 35% in a single week. However, despite that bullish momentum, the asset failed to maintain its climb above the 200-day Exponential Moving Average (EMA) and the 23.6% Fibonacci retracement level near $0.000016. The inability to secure gains above these technical markers has signaled waning bullish strength, with the price now retreating for a third consecutive day.

The recent price action suggests that SHIB is undergoing a retest of a previously broken inverted head-and-shoulders pattern. Such a move often serves as a confirmation phase before either a continuation of the rally or a breakdown. Adding to this technical outlook, the Relative Strength Index (RSI) has dropped from the overbought zone and now hovers near the 14-day simple moving average at 57.36. While this indicates a slowing of momentum, it also leaves room for another upward leg if buying interest returns at these lower levels.

A bounce from the current demand zone could potentially push SHIB to retest the upper resistance near $0.000025, which aligns with the 78.6% Fibonacci level and acts as a key psychological barrier. However, if bulls fail to defend the $0.000015 region, the next line of defense lies around the 50-day EMA at $0.00001365. Should the sell-off extend below that, a further decline toward the psychological support level of $0.000010 becomes increasingly likely.

Beyond price charts, activity in the derivatives market has added another layer of insight into current trader sentiment. Funding rates have flipped into negative territory, indicating that bearish positions are now more dominant. Open interest has also seen a notable decline, dropping by over 5% to roughly $245 million. Within the last 24 hours alone, more than $1.6 million in long positions were liquidated, a clear reflection of heightened volatility and caution among market participants.

Interestingly, despite these bearish signals, derivative data suggests that bullish sentiment may be starting to regroup. The long-to-short ratio has shifted, with long positions now making up more than 56% of trader activity, indicating that some market participants are viewing the current dip as a buying opportunity rather than a breakdown. This growing interest in long positions could be a precursor to a price recovery if overall market sentiment stabilizes.

Adding further intrigue to the current market scenario is the dramatic surge in Shiba Inu’s token burn rate. Over the past 24 hours, more than 28 million SHIB tokens have been burned, marking an explosive 6,519% increase. This spike in token destruction reduces the circulating supply and may reinforce the potential for a rebound. Token burns typically enhance scarcity, which can strengthen bullish sentiment and lead to upward price movement, especially when accompanied by increased speculative interest.

The recent increase in burn activity is attributed to enhanced community participation and renewed enthusiasm around SHIB’s long-term deflationary mechanics. These developments could support the token’s value proposition as investors weigh the impact of a reduced supply in an otherwise volatile market.

In summary, Shiba Inu finds itself at a crucial junction. The asset has pulled back significantly after a strong rally, and its current position near the $0.000015 support level will be closely watched by traders. While technical indicators show weakening momentum, derivative market behavior and the aggressive spike in burn rate suggest that a recovery may still be on the table. If bulls can defend this critical zone, SHIB may have a shot at reclaiming higher levels in the coming days.