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Shiba Inu Burns 26M Tokens, Price Still Falls

The Essentials at a Glance

• Shiba Inu (SHIB) saw a 5762.9% increase in token burning – over 26 million SHIB were destroyed within 24 hours.
• Despite this deflationary measure, the price dropped by 1.82% to 0.00001259 USD.
• Retail investor activity is increasing, while large investors (so-called “whales”) are holding back.
• Technical indicators suggest a possible continuation of sideways or downward movement.
• Strong exchange outflows indicate long-term confidence among holders.

Deflationary Measures Without Price Impact

The Shiba Inu community has significantly intensified its deflationary efforts. Over 26 million SHIB tokens were burned within a single day – a 5762.9% increase in the burn rate. These measures aim to reduce supply and support the price in the long term. However, this time the expected effect did not materialize: the price fell slightly by 1.82%.

This shows that token burns alone are currently not sufficient to sustainably influence the market. Additional impulses are needed, such as institutional interest or technical breakouts.

Increased Activity Among Retail Investors

On-chain data shows a rising involvement of retail investors. The number of new addresses increased by 19.83% in the past seven days, while active addresses rose by 9.41%. The number of addresses with zero balance also grew by 29.38%. This indicates high turnover and growing interest in the retail segment.

The distribution of transaction sizes is striking: while transactions under one US dollar increased by 238.46%, larger transactions declined sharply. Transfers between 1,000 and 10,000 USD dropped by 66.52%, and those between 10,000 and 100,000 USD even fell by 74.56%. This shows that the market is currently dominated by retail investors – but without the support of major capital providers, upward pressure is lacking.

Technical Situation: Consolidation in Support Zone

SHIB is currently moving within a support zone between 0.00001028 and 0.00001196 USD. In the past, this area has often been the starting point for short-term recoveries. Nevertheless, the overall structure remains bearish: the price is below a declining trendline.

The Relative Strength Index (RSI) is at 41 – indicating weak momentum without the market being oversold. A further decline cannot be ruled out before a potential recovery sets in.

Exchange Flows: Holders Show Confidence

Movements on exchanges show a mixed picture. Inflows (tokens deposited on exchanges) rose by 26.43%. This may indicate selling intentions. At the same time, outflows (tokens withdrawn from exchanges) increased by 92.01% – a significantly stronger rise.

When more SHIB is withdrawn from exchanges than deposited, it suggests a long-term holding strategy by investors. Such behavior reduces short-term selling pressure and indicates confidence in future development.

Derivatives Market: Early Signs of Optimism

In the derivatives sector, early positive signals are emerging. The funding rate – an indicator of the ratio between long and short positions – turned slightly positive at 0.0048%. This means that more traders are betting on rising prices.

A look at the OKX liquidation map shows that many short positions are located between 0.0000132 and 0.0000133 USD. If the price moves into this range, automatic buybacks (short squeezes) could create upward momentum. Conversely, a support zone with high liquidity lies at 0.00001208 USD.

Our Assessment

Shiba Inu is currently showing contradictory signals. On one hand, there is massive token burning, increasing user activity, and strong outflows from exchanges – all signs of growing community confidence. On the other hand, clear buy signals from institutional investors are lacking, and the technical structure remains weak.

For you as an investor, this means: entering at the current level carries risks, but also opportunities. If SHIB can sustainably surpass the 0.0000133 USD mark, it could trigger a new upward movement. Until then, patience is required.

Sources

• IntoTheBlock
• TradingView
• CoinGlass