Shiba Inu's Price Drops 1.9% Amid 5,762.9% Burn Rate Surge

Shiba Inu's latest price was $0.00001249, down 1.897% in the last 24 hours. This recent price movement is part of a broader narrative surrounding the cryptocurrency, which has seen significant deflationary activity. The token burn rate for Shiba Inu has surged by 5,762.9%, indicating a concerted effort by the community to reduce the circulating supply of SHIB tokens. This reduction in supply can potentially create upward price pressure, as fewer tokens in circulation can drive demand higher.

The spike in burn activity was driven by multiple transactions sending SHIB to dead wallets, effectively removing millions of tokens from circulation. According to Shibburn, a leading SHIB burn tracker, 26.2 million SHIB tokens were burned in 24 hours. This sharp increase in burn activity highlights the community's commitment to reducing the circulating supply, which could be a bullish signal for the token's future price movements.

Despite the massive token burn and increased user participation, the market dynamics for SHIB remain complex. Recent on-chain metrics reveal a significant uptick in retail participation, with new addresses increasing by 19.83%, active addresses by 9.41%, and zero balance addresses surging 29.38% over the past week. This influx indicates heightened user engagement and increased address churn, typical of retail-driven market phases. However, transaction size analysis presents a nuanced picture. Sub-$1 transactions soared by 238.46%, while larger transactions in the $1K–$10K and $10K–$100K ranges dropped sharply by 66.52% and 74.56%, respectively. This divergence underscores a shift toward retail dominance, as whale activity diminishes, limiting significant upward price pressure.

Market flows indicate a notable divergence between inflows and outflows. While 7-day Exchange Inflows rose by 26.43%, indicating some selling interest, outflows surged by 92.01%, nearly doubling inflows. This trend suggests that a significant segment of SHIB holders prefer self-custody, reflecting increased long-term conviction. Such a pattern typically reduces immediate selling pressure and signals a holder base willing to endure volatility, which can be a positive foundation for future price stability or appreciation.

Derivatives metrics show cautious optimism among traders. SHIB’s Open Interest-Weighted Funding Rate has turned slightly positive at 0.0048%, indicating a modest tilt toward long positions. This shift points to cautious optimism among derivatives traders, although overall conviction remains subdued. The OKX Liquidation Heatmap highlights critical liquidity zones between $0.0000132 and $0.0000133, where short positions are vulnerable. A successful breach above this range could trigger short squeezes, potentially accelerating upward momentum. Conversely, robust support clusters near $0.00001208 may provide a safety net during price dips.

The convergence of SHIB’s unprecedented burn rate, rising retail engagement, and dominant exchange outflows suggests growing investor conviction. However, the absence of whale participation and the prevailing bearish technical structure remain significant obstacles. Until SHIB decisively breaks above the descending resistance and clears the $0.0000133 liquidity cluster, upward momentum may remain constrained. Nevertheless, the current environment lays foundational bullish elements, with retail momentum and reduced circulating supply potentially setting the stage for a future recovery.

Shiba Inu’s recent deflationary surge and increased retail activity highlight a market in transition, marked by growing long-term holder conviction despite muted price response. While technical indicators caution that further downside is possible, the shift in market flows and derivatives sentiment point to cautious optimism. Investors should monitor key resistance and support levels closely, as a breakout above critical liquidity zones could catalyze renewed upward momentum. For now, SHIB’s evolving dynamics warrant attention from traders seeking to capitalize on early signals of a potential trend reversal.