Whales Store $64M SHIB, But Burn Rate Collapse Deepens Value Crisis
- Shiba Inu (SHIB) burns surged 1,309% as the community attempts to stabilize prices amid declining burn rates and bearish technical indicators. - Whale accumulation of 4.66 trillion tokens ($64M) in cold storage signals long-term confidence but contrasts with a 98.89% drop in burn rate, raising sustainability concerns. - Technical indicators like RSI (44) and negative MACD suggest continued bearish momentum, with SHIB trapped in a $0.000011–$0.000013 range, awaiting a breakout. - Market sentiment is split
SHIB burns have surged by 1,309% in recent sessions as the Shiba Inu community scrambles to stabilize the token’s price amid bearish technical indicators and a dramatic drop in the burn rate. The token, currently trading around $0.0000122, is caught in a symmetrical triangle pattern, with traders closely watching for a decisive breakout either upward or downward. Despite this accumulation, the broader market remains under pressure, with SHIB’s Relative Strength Index (RSI) hovering near 44, indicating a continuation of bearish momentum.
Whale activity has provided some underlying support to SHIB’s price, with large holders recently transferring 4.66 trillion tokens into cold storage. This move, valued at approximately $64 million, signals long-term confidence in the asset and has helped absorb some of the selling pressure. However, this positive development is being overshadowed by a 98.89% decline in SHIB’s burn rate, which has raised concerns about the sustainability of its deflationary model. The reduced rate of token destruction is seen as a significant headwind for SHIB’s price, as it weakens the tokenomics strategy that has previously supported value retention.
Technical analysis reinforces the bearish outlook for SHIB . The token remains trapped within a $0.000011 to $0.000013 trading range, with the 100-day and 200-day EMAs acting as resistance levels. The Awesome Oscillator has turned negative, indicating a loss of momentum, while the MACD histogram shows bearish divergence as both the MACD line and signal line remain in negative territory. The Stochastic oscillator also reflects oversold conditions, with the %K at 26.19 and %D at 35.06, yet this has not translated into a meaningful rebound. SHIB’s position near the lower band of the Bollinger Bands further underscores its precarious standing in the market, suggesting either a potential bounce or the start of a deeper downtrend.
Despite the bearish signals, some optimism persists among SHIB holders. The token’s exchange reserves have hit yearly lows, dropping to $1.05 billion from a high of nearly $4.77 billion in late 2024. This trend indicates a shift toward long-term holding and suggests that retail investors are increasingly moving SHIB to private wallets, reducing short-term selling pressure. Additionally, SHIB remains within a defined triangle pattern, and a breakout—either above $0.000013 or below $0.000011—is widely anticipated in the coming weeks. A break above the $0.000013 level could potentially open the door for a relief rally, while a drop below $0.000011 could trigger further downside.
Investors remain divided on the outlook for SHIB. Short-term traders are advised to wait for a clear break from the current range before committing, as the bearish indicators suggest that a directional move is imminent. Long-term holders, on the other hand, may see the current price levels as an opportunity, especially if whale accumulation trends continue and the token’s burn rate stabilizes. However, the declining burn rate and weak technicals pose a risk to any bullish assumptions, and conservative investors are urged to employ risk management strategies such as stop-loss orders.
SHIB’s current situation highlights the fragility of its market structure. With no significant bullish divergence and liquidity remaining low, the token is vulnerable to further sell-offs. The community must act decisively to reinforce SHIB’s value proposition and rebuild confidence in its deflationary model. In the absence of a catalyst, the bearish trend is likely to continue, and the next few weeks will be critical in determining whether SHIB can break free from its consolidation or face another downward leg.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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