Shiba Inu (SHIB) is facing a significant price downturn after a brief rally, losing around 23% from its year-high. While some analysts are warning of further losses due to weak market conditions, others point towards potential for long-term growth driven by the increased burn rate and rising Shibarium transactions. The price briefly reached $0.00001567 before encountering strong selling pressure and retracing 21%. Analyst Nebraskangooner has flagged this as a fake breakout, predicting further downside risks due to SHIB’s inability to sustain its bullish momentum. Other factors like the ongoing volatility stemming from potential tariff increases on Shiba Inu also contribute to the price drop. However, recent data from Shibburn shows an impressive surge in the burn rate, with over 12,000% increase in just a day, exceeding 410.7 trillion tokens burned so far. Despite this positive development, the market response is muted, and investors remain cautious about the short-term impact of these changes on price movement. Shibarium’s growing adoption, with over 1 billion transactions processed recently, adds to the optimism surrounding SHIB’s long-term growth potential. However, for now, traders are closely watching the $0.00001082 level, as it could signal a deeper correction if breached. Meanwhile, crypto enthusiast JD Hatefi believes Bitcoin’s surge could potentially trigger a price rally in SHIB, with significant gains anticipated if Bitcoin reaches $150,000. The current price of SHIB stands at $0.00001220, down 3.78% over the last 24 hours. While the long-term prospects for Shiba Inu remain positive, technical factors and market pressures continue to pose challenges.