Shiba Inu's Price Drops 5.36% Amid 102M Token Burn, Whale Accumulation

Shiba Inu's latest price was $0.00001226, down 5.36% in the last 24 hours. This recent price movement has been accompanied by a significant surge in the token's burn rate, with over 102 million SHIB tokens being permanently removed from circulation within a 24-hour period. This dramatic increase in the burn rate, coupled with substantial exchange outflows, indicates a tightening of the token's supply. The exchange outflows, totaling 25.19 billion SHIB, suggest that large holders, or whales, are moving their tokens off exchanges and into private wallets, a behavior typically associated with long-term holding strategies and reduced sell pressure.

Historically, spikes in SHIB’s burn rate have been linked to periods of increased trader activity and diminished selling pressure, often preceding upward price movements. The current burn surge, combined with significant exchange withdrawals, suggests a similar pattern may be emerging. Market participants are advised to watch for confirmation signals such as increased volume and price action near key technical levels to validate this potential trend reversal.

Technical analysis reveals that SHIB has been trading within a descending channel, characterized by lower highs and lower lows. Recently, the token found support in a demand zone between $0.0000100 and $0.0000120, demonstrating persistent buying interest. As the price approaches the channel’s upper boundary, a critical resistance level, a decisive close above this trendline, supported by robust trading volume, could signal a breakout and a reversal of the prevailing downtrend.

Data from CryptoQuant indicates a significant net outflow of 25.19 billion SHIB tokens from exchanges, marking a 144.3% decrease in exchange-held supply. This trend is often interpreted as a bullish indicator, as it implies that investors prefer self-custody, reducing the likelihood of immediate selling. Such accumulation behavior typically precedes upward price momentum, especially when combined with other positive on-chain signals.

SHIB’s volatility has contracted to 64.55%, its lowest level in 30 days. Volatility compression often precedes significant price moves as the market consolidates and traders await a catalyst. Historically, similar low-volatility phases in SHIB have been followed by sharp breakouts, suggesting that the current calm could be a precursor to a strong directional move. Traders should monitor volume and price action closely to identify the breakout’s direction.

The OKX SHIB/USDT liquidation heatmap highlights dense clusters of short positions vulnerable to liquidation between $0.0000132 and $0.0000140. Should SHIB break above this critical resistance range, it could initiate a cascade of forced short exits, amplifying buying pressure and accelerating price gains. This dynamic often creates a short squeeze, attracting additional buyers anticipating momentum continuation.

Shiba Inu’s recent surge in token burns and significant exchange outflows have materially tightened supply, setting the stage for a potential breakout from its descending channel. The combination of low volatility, strong accumulation by whales, and critical short liquidation zones creates a compelling environment for upward price momentum. Traders and investors should monitor SHIB’s ability to close above the $0.0000132 resistance level with volume confirmation, as this could trigger a rapid rally. Conversely, failure to breach this threshold may result in continued sideways consolidation, underscoring the importance of disciplined risk management in volatile markets.