SHIB Burn Rate Plunges, Reversal Signs Emerge
The Essentials at a Glance
The burn rate of Shiba Inu (SHIB) has dropped by 82% over the past seven days. Despite this slowdown, technical indicators and on-chain data show that the market is currently in a consolidation phase. Large investors (whales) continue to accumulate while the price is testing a key support zone. The market is showing signs of a potential trend reversal, even though many investors are still at a loss.
Sharp Decline in SHIB Burn Rate
Over the past week, the SHIB burn rate – that is, the amount of SHIB tokens permanently removed from circulation – has fallen by 82%. This is one of the steepest declines in a short period. This development raises questions: Has interest in SHIB declined, or is this just a temporary pause?
At the time of reporting, the SHIB price was at USD 0.00001095 – a decline of 2.23% within 24 hours. Despite the price drop, technical patterns suggest a potential reversal movement.
Technical Analysis: Support Holding So Far
SHIB is currently moving within a so-called “falling wedge” – a technical pattern that often signals an upcoming breakout. The price recently recovered from a key support zone between USD 0.00001035 and USD 0.00001393. This zone has been defended multiple times in the past.
The Relative Strength Index (RSI) stands at 34.90. Values below 30 are considered oversold, which could indicate a potential recovery. However, for a sustained upward trend to form, SHIB must break through the resistance at USD 0.00001393. If it fails to do so, a fallback to USD 0.00001035 or even USD 0.00000800 is possible.
Holder Structure: Majority at a Loss
On-chain data shows that around 90% of SHIB holders are currently at a loss. Only about 9% are in profit. The largest concentration of wallets is just above the current price. This means that if the price rises, many investors may sell once their entry levels are reached – which could slow down upward momentum.
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Only 0.67% of holders are “at the money,” meaning they are exactly at their entry price. This indicates that new purchases are currently associated with higher risk unless clear bullish signals emerge.
Exchange Movements Indicate Accumulation
Net inflows to exchanges show a decrease of 156.65 billion SHIB – a decline of 3.2%. This means that more tokens were withdrawn from exchanges than deposited. Such movements often indicate accumulation by long-term investors.
Combined with price stabilization, this could signal a potential upward movement. However, this factor alone is not enough. Additional new demand is needed to sustainably support the price.
Liquidations: Shorts Under Pressure
In recent days, long positions worth USD 305,510 were liquidated, while short positions only amounted to USD 85,730. This shows that bulls have recently been under more pressure. At the same time, the picture is beginning to shift: the first shorts are coming under pressure, indicating a possible short squeeze.
A short squeeze occurs when short sellers are forced to buy back their positions – which further drives the price up. This requires that buyers are able to defend the current support level.
Memecoin Hype: A Pause, Not the End
The decline in the burn rate is not a sign of the end of the SHIB hype. Rather, this is a phase of consolidation. Market structure, the behaviour of large investors, and technical indicators suggest a preparation for the next move.
Market activity remains high. As long as support zones hold and new demand emerges, a rebound is more likely than a further decline.
Our Assessment
The sharp drop in the SHIB burn rate may seem negative at first glance. But a deeper analysis shows: the market is preparing for a potential trend reversal. Technical patterns, accumulation by whales, and a stable support zone point to an upcoming upward movement.
However, the majority of holders remain at a loss. This means that any price increase could face selling pressure. As an investor, patience is key. Entering the market now only makes sense with a clear strategy and risk awareness.
Sources
- TradingView
- IntoTheBlock
- CryptoQuant
- Coinglass
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.15 |
| 24h % | -3.85 % |
| 7d % | 4.18 % |
| 30d % | -10.27 % |
| 60d % | -45.11 % |
| 1y % | 0.80 % |
| Market Cap | $22,780,885,495.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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