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Shiba Inu (SHIB), the popular memecoin, is at a pivotal moment. Over the past week, its burn rate has nosedived by 82%, marking one of the steepest declines in the project’s recent history. This sharp drop has ignited debate across the crypto community: is SHIB losing momentum, or merely recharging before its next leg up?
At the time of writing, SHIB traded at $0.00001095, reflecting a 2.23% decline. While this dip may seem bearish, the technical outlook tells a more nuanced story. SHIB recently rebounded from a strong accumulation zone between $0.00001035 and $0.00001393. This range has historically acted as a support level, and the bounce comes after months of price action trapped in a falling wedge—a pattern often preceding bullish breakouts.
The Relative Strength Index (RSI) sits at 34.90, placing SHIB near oversold territory. If bulls can reclaim the $0.00001393 resistance, a rally could follow. However, failure to do so risks a retest of the $0.00001035 level, with further downside toward $0.00000800 if sentiment weakens.
On-chain metrics offer more insight. According to IntoTheBlock, nearly 90% of SHIB holders are currently at a loss. This concentration of unrealized losses suggests potential selling pressure on any upward price movement, especially from investors looking to exit at breakeven.
Yet, exchange data reveals a subtle bullish undercurrent. Net outflows of 156.65 billion SHIB from exchanges signal possible accumulation by long-term holders—behavior that often precedes price rallies.
Moreover, liquidation data from Coinglass shows long positions took heavier losses ($305.51K vs. $85.73K in shorts), but shorts are beginning to feel the pressure. If bulls defend current levels, a short squeeze could accelerate upward momentum.
In summary, SHIB’s memecoin hype isn’t fading—it’s consolidating. Despite a dramatic drop in the burn rate, technical and on-chain indicators hint at a possible breakout. For now, SHIB appears poised for a decisive move, and long-term holders are watching closely.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Shiba Inu Sees Massive Burn, Price Struggles
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
