• SHIB burn rate rises weekly, despite daily decline challenges.
  • Strong support level and bullish sentiment suggest possible price recovery.

Shiba Inu (SHIB) has hit a weekly low of $0.00002047, recording a 3% decline in the past 24 hours, while its trading volume dropped by 34%. Over the last month, the token has fallen by 24%, reflecting broader market trends influenced by significant selling pressure. The downturn follows a major market crash that saw Bitcoin ( BTC ), Ethereum ( ETH ), and other assets experience sharp declines.

Can Shiba Inu (SHIB) Hold Its Crucial Support Level? image 0 SHIB Price Chart, Source: Sanbase

Notably, on January 3, a whale moved 8.18 trillion SHIB, worth approximately $195.1 million, from CryptoCom to a private wallet during a brief consolidation phase. This activity preceded a broader bearish market turn triggered by the U.S. Institute for Supply Management’s report, leading SHIB to shed 14.5% in value.

Despite the price drop, on-chain metrics suggest an optimistic outlook. According to research, large transaction volumes for SHIB surged by 2004% within 24 hours, indicating robust activity from whales and long-term holders. Meanwhile, Coinglass reported an outflow of $7.04 million worth of SHIB from exchanges, pointing to potential accumulation during the downturn.

Moreover, traders also demonstrated strong bullish sentiment. Coinglass data revealed a SHIB Long/Short Ratio of 2.04, the highest since early 2025, with 67.16% of top traders holding long positions.

SHIB’s Short-Term Future

Shiba Inu’s technical indicators suggest resilience, with the price near a crucial support level at the 200 Exponential Moving Average (EMA). Analysts believe that holding above this level could spark a rally, potentially driving it to $0.00003939—a rise of 80%—over time.

Additionally, the SHIB burn rate saw a 72% dip on a daily basis but increased by 164.53% over the week, with over 102 million tokens burned. The community’s consistent efforts to reduce supply underpin long-term optimism despite current challenges.

As it navigates volatility, its community, whale activity, and on-chain metrics hint at potential recovery ahead.