- SHIB’s burn rate jumped 7,200%, cutting circulating supply and hinting at stronger scarcity effects.
- Large holders boosted positions from 28B to 89B SHIB, signaling confidence at current levels.
- SHIB hovers above $0.00001100; failure to hold risks a drop to $0.00001010.
Shiba Inu has continued to face selling pressure after falling to $0.0000118, its lowest level since early August. The token’s recent decline has placed it near a crucial support region, with technical patterns suggesting consolidation. Price weakness has coincided with growing attention to on-chain signals that highlight possible accumulation trends.
The most notable development is a dramatic 7,200% surge in SHIB’s burn rate, which sharply reduced the circulating supply. Whale activity also expanded significantly, with large holders increasing combined balances from 28 billion to 89 billion SHIB. These movements indicate that major players are positioning at lower levels despite prevailing market weakness.
Exchange reserves for SHIB have also trended lower, signaling declining availability for immediate sale across platforms. Reduced reserves typically indicate stronger holding behavior and tighter market supply. Together, these factors provide some balance against bearish short-term trading pressure.
Technical Indicators and Resistance Levels
The daily chart shows SHIB trading at $0.00001186, just above the recent low of $0.00001010. Moving averages, including the 20-day and 50-day, now act as overhead resistance. Price must gain strength to overcome these levels and shift momentum.
Source: chart.ainvest
The MACD indicator signals further weakness as both lines remain below the zero line. Red histogram bars confirm negative momentum dominating in the short term. A bullish crossover would be required to support a sustained recovery.
SHIB has consistently failed to maintain rallies beyond $0.00001300, with repeated rejections at that level. Current support remains near $0.00001100, which is under frequent testing. Failure to defend this level risks a move back to $0.00001010.
Outlook Toward Breakout or Breakdown
SHIB trades within a consolidation-to-downtrend phase, with the market split between bearish signals and bullish accumulation. The structure suggests pressure remains while potential rebound opportunities develop. Market direction depends on defending key support zones.
If SHIB holds above $0.00001100, it may attempt a rebound toward $0.00001250 in the short term. A break above resistance at $0.00001300 would confirm momentum shift. However, repeated rejections around these levels could trigger renewed declines.
The broader context highlights SHIB’s volatile history, with sharp rallies and steep corrections shaping its trajectory. While technicals show weakness, on-chain dynamics strengthen the long-term case. The coming sessions remain crucial for defining the next major trend.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
