Shiba Inu is approaching a critical moment as technical indicators, on-chain activity, and tokenomics signal potential price changes at the time of this report. With over 410 trillion tokens burned and increased network usage through Shibarium, traders are closely watching the next move.
Prices are fluctuating near a key support level, while the MACD indicator shows potential momentum reversal. Thus, this phase appears ready for a breakout or prolonged consolidation.
The amount of Shiba Inu tokens burned has surged as supply decreases further.
The SHIB burn rate has surged, with data from ShibBurn showing a daily increase of 3,145%. This corresponds to 18.83 million SHIB tokens sent to an inaccessible address. Since its launch, over 410 trillion tokens have been permanently removed from circulation.
This type of supply reduction, known as burning, helps maintain scarcity within the ecosystem. This process is in contrast to token unlocking, which increases the available supply and can exert downward pressure. Blockchain projects often use deflationary token supplies to control inflation.
The Shibarium layer-2 network also participates in this process. Transaction fees on the network are partially converted into Shiba Inu and burned.
According to recent reports, Shibarium has now processed over 1.129 billion transactions. The number of active wallets on the network has reached 206 million addresses. These figures indicate increasing usage and interaction, which also supports the SHIB burn mechanism through fee activity.
Technical indicators show resistance levels ahead, with early signs of momentum change.
SHIB is trading at $0.00001437 with a daily increase of 10.43%. The price is trading on a long-term upward support trendline, effective since mid-2022. This trendline continues to provide structural support against deeper corrections.
The Fibonacci retracement levels mark resistance areas. These levels include 23.6% at $0.00002479, 38.2% at $0.00003697, and 50% at $0.00004682. The 61.8% level, often monitored by technical traders, is at $0.00005667. Price volatility towards any of these levels may slow down or reverse if the resistance level holds.
The MACD continues to decline, with the MACD line remaining below the signal line. However, contracting histogram bars may indicate a shift to a bullish crossover if momentum increases. A confirmed crossover could signal stronger upward pressure.
The RSI stands at 41.11. It indicates that the asset is neither oversold nor overbought. The rising RSI trend shows slow buyer interest but still below the 50 level. It reflects weak overall momentum.
The price action of Shiba Inu and whale activity indicates an accumulation phase.
Recent price candles show small body formations, often associated with market indecision. This price action, combined with a recovery from the historical support level of $0.00000510, indicates the possibility of accumulation.
Whale activity is also increasing. IntoTheBlock reported 48 large Shiba Inu transactions in the past 24 hours, close to the 7-day high of 49. The 7-day low was 29 on May 1. The increase in transaction size and frequency may indicate positioning ahead of a market move.
In previous cycles, large trades occurred near periods of increasing volatility. These trades, usually from whales or institutions, can signal accumulation or portfolio adjustment. Consistent activity may indicate ongoing strategic interest in SHIB.
The liquidation trend reflects the unclear direction of the market.
According to data from CoinGlass, the leverage liquidation rate was uneven throughout the day. A large buy position was closed on April 7, with over $900,000 during this period, due to the declining value of Shiba Inu.
On April 23, there was a significant increase in short liquidations during a brief price recovery. Since the beginning of April, both short and long liquidations have become less pronounced and more symmetrical.
This is a sign that traders are still applying leverage, but in markets that seem to have no clear trend. Long liquidations increased in early May, while short selling pressure remains lower.
All of this may indicate weakening bullish sentiment among traders. The current RSI and Moving Average Convergence Divergence (MACD) indicate limited action from traders. They may be waiting for the right signal to enter the market.
The previous day, Shiba Inu remained stable around $0.00001275. Therefore, the combination of lower liquidation volume and the flattening of the price range implies that a breakout is now evident with a price increase of over 10% in one day.