- SHIB formed a bullish wedge as RSI neared oversold and price tests key support.
- Whale accumulation rose while shorts faced pressure, signaling potential for a bullish reversal.
Over the last seven days, the Shiba Inu [SHIB] burn rate has plunged by 82%, marking one of the sharpest weekly slowdowns in the project’s recent history.
This significant drop in token burns has triggered speculation over whether the memecoin’s hype is dying out or merely taking a breather.
At the same time, SHIB traded at $0.00001095, reflecting a 2.23% decline at the time of writing.
While this price dip may appear discouraging on the surface, on-chain trends and technical indicators suggest SHIB might still be gearing up for a bigger move.
Therefore, it becomes crucial to assess the price action, holder sentiment, and broader market dynamics to understand where SHIB is really headed.
Shiba Inu: Preparing for a breakout or sinking deeper?
SHIB recently bounced from a key accumulation zone between $0.00001035 and $0.00001393, where demand has consistently supported price action.
After months inside a falling wedge, the breakout suggests early signs of bullish momentum.
The RSI was 34.90 at press time, indicating that SHIB traded near oversold territory, a region often associated with rebound opportunities.
However, bulls must reclaim the $0.00001393 resistance to confirm this shift. Failure to do so may result in a retest of the $0.00001035 support, with a possible slide toward $0.00000800 if buyers lose control.
Source: TradingView
Are SHIB holders drowning in losses?
According to the In/Out of the Money chart, 89.95% of holders were at a loss at press time, while only 9.37% remained in profit.
The largest concentration of addresses was slightly above this price, which means any upward movement will likely face heavy selling.
So, many investors may exit their positions at breakeven levels, adding pressure on price rallies.
Additionally, only 0.67% of SHIB holders were at the money, showing that current entries are highly risky without a clear bullish trigger.
Therefore, despite minor rebounds, a sustainable move upward depends on strong buying volume and sentiment reversal.
Source: IntoTheBlock
Exchange behavior analyzed
Exchange netflow was at -156.65 billion SHIB, indicating a 3.2% drop net outflow. This means more tokens are moving out of exchanges than into them, which usually suggests accumulation.
Therefore, long-term holders may be positioning themselves for a potential rally. Additionally, this behavior often precedes bullish breakouts when combined with price consolidation.
However, without fresh demand, this trend alone may not push price upward significantly.
Source: CryptoQuant
Who’s getting liquidated—bulls or bears?
At the time of writing, SHIB saw $305.51K in long liquidations compared to $85.73K in short liquidations. Although longs took a bigger hit, the market remains active, and shorts are starting to get squeezed.
Therefore, bears are not fully in control, and any surge in price may trigger a short squeeze. Additionally, the presence of long interest shows that some traders are already betting on a bounce.
If bulls can defend the current support, momentum could flip in their favor.
Source: Coinglass
Is the memecoin hype fading or just getting started?
The memecoin hype is not fading—it is consolidating. SHIB’s price structure, whale accumulation, and technical signals show signs of preparation, not retreat.
Despite the drop in burn rate, the market remains active and reactive. Therefore, SHIB looks more likely to bounce than break down.