Shiba Inu Burn Rate Drops 82% as Price Falls 2.23%

Over the past week, the burn rate of Shiba Inu (SHIB) has decreased by 82%, marking one of the most significant weekly slowdowns in the project's recent history. This abrupt decline in token burns has sparked discussions about whether the memecoin's popularity is waning or simply taking a pause.

At the time of writing, SHIB was trading at $0.00001095, reflecting a 2.23% decline. While this price drop may seem discouraging, on-chain trends and technical indicators suggest that SHIB could still be poised for a significant move. It is essential to evaluate the price action, holder sentiment, and broader market dynamics to understand SHIB's potential trajectory.

SHIB recently rebounded from a key accumulation zone between $0.00001035 and $0.00001393, where demand has consistently supported price movements. After months within a falling wedge, the breakout indicates early signs of bullish momentum. The Relative Strength Index (RSI) was at 34.90, suggesting that SHIB was trading near oversold territory, a region often associated with rebound opportunities. However, bulls must reclaim the $0.00001393 resistance to confirm this shift. Failure to do so may result in a retest of the $0.00001035 support, with a possible slide toward $0.00000800 if buyers lose control.

According to the In/Out of the Money chart, 89.95% of holders were at a loss, while only 9.37% remained in profit. The largest concentration of addresses was slightly above this price, indicating that any upward movement would likely face heavy selling. Many investors may exit their positions at breakeven levels, adding pressure on price rallies. Additionally, only 0.67% of SHIB holders were at the money, showing that current entries are highly risky without a clear bullish trigger. Therefore, despite minor rebounds, a sustainable move upward depends on strong buying volume and sentiment reversal.

Exchange netflow was at -156.65 billion SHIB, indicating a 3.2% drop in net outflow. This means more tokens are moving out of exchanges than into them, which usually suggests accumulation. Long-term holders may be positioning themselves for a potential rally. Additionally, this behavior often precedes bullish breakouts when combined with price consolidation. However, without fresh demand, this trend alone may not push the price upward significantly.

At the time of writing, SHIB saw $305.51K in long liquidations compared to $85.73K in short liquidations. Although longs took a bigger hit, the market remains active, and shorts are starting to get squeezed. Bears are not fully in control, and any surge in price may trigger a short squeeze. Additionally, the presence of long interest shows that some traders are already betting on a bounce. If bulls can defend the current support, momentum could flip in their favor.

The memecoin hype is not fading—it is consolidating. SHIB’s price structure, whale accumulation, and technical signals show signs of preparation, not retreat. Despite the drop in burn rate, the market remains active and reactive. Therefore, SHIB looks more likely to bounce than break down.