Shiba Inu’s 24-hour burn rate soared by over 2,400%, removing nearly 40 million tokens from circulation.
Despite a 2.69% price increase, exchange netflows dropped by 3.37%, hinting at shifting market sentiment.
On-chain data shows weakening whale activity, fewer profitable holders, and declining large transactions.
Address activity is up, but this may reflect short-term speculation rather than sustainable growth.
Key support and resistance levels are under pressure, with dense liquidation zones adding to volatility.
The rally’s sustainability is questionable without stronger fundamentals and renewed whale interest.
The Burn Surge: A Double-Edged Sword
In the past 24 hours, Shiba Inu’s token burn rate exploded, with over 2,408% more tokens incinerated than the previous day—nearly 40 million SHIB vanished from the supply. This dramatic reduction in circulating tokens coincided with a modest 2.69% price uptick, sparking a wave of short-term optimism among traders. At the same time, exchange netflows dipped by 3.37%, suggesting that some holders are moving tokens off exchanges, possibly in anticipation of further price action.
However, while a shrinking supply often hints at bullish undertones, it’s important to recognize that such burn events can create temporary excitement without guaranteeing a lasting uptrend. The sustainability of this momentum remains uncertain, especially when viewed against the broader backdrop of on-chain activity and market structure.
On-Chain Contradictions: Caution Amid the Hype
Despite the excitement around the burn, a closer look at on-chain metrics reveals a more cautious story. Network growth, while still positive, is barely moving the needle at +0.17%. The “In the Money” metric, which tracks the percentage of holders in profit, has dropped by 4.29%, indicating that fewer participants are seeing gains. Large transaction volumes have also declined by 4.18%, and concentration—a measure of whale involvement—has slipped by 0.03%.
These trends point to a fading presence of “smart money” and a weakening core network. The divergence between price action and these underlying metrics could be a warning sign for traders who are betting solely on the recent burn-driven momentum. When price rallies are not supported by strong fundamentals, they often prove short-lived.
Price at a Crossroads: Support and Resistance in Focus
Currently, SHIB is consolidating just above the $0.00001311 mark, struggling to break through the 0.382 Fibonacci resistance at $0.00001461. For bulls to regain control, reclaiming the $0.000014 range is essential, as this area represents a significant barrier. The MACD indicator is showing narrowing momentum, with a potential crossover on the horizon—an inflection point that could determine the next move.
If the price fails to hold the $0.00001228 support, a sharper correction could be in store, potentially dragging SHIB down toward the 1.618 Fibonacci extension at $0.00000995. The market’s direction now hinges on whether buyers can defend these key levels and turn resistance into support, or if bears will seize the upper hand.
Address Activity: Retail Frenzy or Sustainable Growth?
Interestingly, address statistics paint a picture of heightened user engagement. New addresses have surged by 28.87%, and active addresses are up by 47.57%. Even more striking, the creation of zero-balance addresses has skyrocketed by 117.39%, which may signal increased churn or speculative trading. This uptick could reflect a wave of retail interest, as new participants flock to capitalize on recent volatility.
Yet, without a corresponding rise in whale activity or profitability, these numbers may not translate into lasting growth. High address activity can sometimes mask underlying weakness, especially if it’s driven by short-term speculation rather than genuine adoption or investment. For SHIB to sustain its momentum, it will need more than just a flurry of new wallets—it needs renewed confidence from larger, long-term holders.
Liquidation Clusters: Volatility on the Horizon
The 24-hour liquidation heatmap reveals dense clusters near $0.0000138, highlighting areas where aggressive short positions are concentrated. Should SHIB break above this level, a cascade of short liquidations could trigger a rapid price spike, amplifying volatility. Conversely, downside risk zones between $0.0000126 and $0.0000124 could see sharp drops if bulls lose their grip.
This setup suggests that the next 48 hours may be especially turbulent, as leveraged traders jockey for position. Liquidation events could dictate the market’s direction, making it crucial for participants to monitor these zones closely and manage risk accordingly.
Conclusion
Shiba Inu’s recent surge in burn rate and address activity has injected fresh energy into the market, but the underlying signals remain mixed. While supply is shrinking and retail engagement is rising, on-chain fundamentals—such as whale participation and profitability—are weakening. Key support and resistance levels are under threat, and dense liquidation zones add another layer of uncertainty. For SHIB to break out of its current range and embark on a sustained rally, it will need a stronger foundation and renewed conviction from larger players. Until then, the market is likely to remain volatile, with short-term moves dominating the landscape.
