Shiba Inu Burn Rate Surges 65,000% — Can SHIB Break Out of Its 4-Month Price Range?

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Key Takeaways:

• Shiba Inu’s burn rate spiked over 65,000%, but its price remains stuck in a four-month range.
  
• On-chain data shows weak retail interest and cautious whale behavior.
  
• A short-term move to $0.0000121 is possible, but stronger demand is needed to fuel a breakout.

Shiba Inu [SHIB], one of the leading memecoins by market cap, is trading close to the bottom of its 4-month price range. After shedding 67% of its value from December 2024 to March 2025, SHIB has struggled to gain bullish momentum. However, a sudden and massive uptick in its burn rate has renewed market interest — but is it enough to spark a rally?

According to data from Shibburn, over 1 billion SHIB tokens were incinerated in the past 24 hours — a staggering 65,141% increase in burn rate. Still, the value of this burn amounted to just $11,583, a negligible amount compared to SHIB’s $6.8 billion market cap.

On-Chain Activity Shows Caution Among SHIB Holders

Despite the eye-catching burn spike, Shiba Inu’s on-chain metrics suggest that retail interest is waning. Santiment data shows a clear decline in daily active addresses since January 2025. While occasional surges in activity did occur, they often coincided with price dips, indicating holders were offloading their tokens rather than buying more.

Moreover, network growth — the number of new addresses being created — remains muted. This decline in speculative participation suggests that investors are in no rush to accumulate SHIB in the short term.

Whale Accumulation Stalls As Supply Distribution Weakens

Whale behavior paints a mixed picture. Addresses holding over 10 million SHIB saw a decline during late June, hinting at a reduced appetite from mid-tier investors. Although this cohort is showing signs of returning, addresses holding over 1 billion SHIB — typically associated with whales — remain flat.

This could mean that large players are sitting on the sidelines, waiting for more favorable market conditions before re-entering in force.

Also Read: Shiba Inu (SHIB) Price Analysis: Bearish Pressure Mounts as Memecoin Market Stalls

Price Outlook: Liquidation Heatmap Suggests $0.0000121 Target

A glance at the 3-month SHIB liquidation heatmap from Coinglass reveals two critical liquidity zones: $0.0000121 and $0.0000108. Both are equidistant from SHIB’s current price, but the upper level at $0.0000121 shows greater liquidity. This makes it a likely short-term target for swing traders.

However, the $0.0000126 level just above this target acts as mid-range resistance. Unless Bitcoin (BTC) stages a strong rally or SHIB sees a major demand surge, a sustained breakout seems unlikely.

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.