Shiba Inu Surges 7.59% Amid Bullish Signals, Whale Activity Looms

Shiba Inu's latest price was $0.00001334, up 7.59% in the last 24 hours. The meme coin has seen increased futures market activity and key bullish technical signals, indicating a potential recovery. This is supported by the 14-day Relative Strength Index (RSI) climbing above the neutral 50 level, now sitting at 57, which is its first bullish signal since late May. Additionally, daily trading volumes have surged past the average of 307.5 billion tokens, reinforcing the strength of the current recovery.

However, the rally is currently testing a key resistance level, and whale activity may present headwinds. Blockchain data shows that just ten wallets control over half of the SHIB supply, and several have moved trillions of tokens to exchanges, sparking concerns about potential sell pressure. Despite these concerns, support remains strong around a certain level, where high-volume buying has repeatedly stepped in. A recent volume spike marked an aggressive test of resistance during the latest breakout attempt.

The Shiba Inu community has significantly increased token burn efforts, achieving a 1,500% rise in burn rate. Retail holders and groups behind Shibburn primarily led these efforts, with minimal involvement from large institutional players. The burn event led to over 1 billion SHIB tokens being burned, but the USD value of burned tokens was negligible compared to Shiba Inu's vast market cap. Immediate market effects were minimal, with SHIB’s price largely stagnant or declining slightly. The impact remained limited, partly because burn events have not consistently propelled price rallies in the past.

Shiba Inu's ongoing burn initiatives focus on burning tokens to potentially increase value. Without institutional or developer engagement, short-term effects remain limited. Historical burn initiatives show similar trends of limited price impact. The community's commitment to reducing supply and supporting SHIB's value is evident in these ongoing burn efforts.

Shiba Inu's rally may be short-lived due to several factors. Whales have remained on the sidelines this year, with many selling their coins in a sign of capitulation. Santiment data shows that holders of between 10 million and 1 billion coins have been on a selling spree this year, explaining why SHIB has underperformed other meme coins. Additionally, Shiba Inu’s open interest in the futures market has been weak in the past few months, standing at just $179 million on a recent Thursday, much lower than that of other smaller meme coins like Pepe and Bonk.

The same is true for Shiba Inu’s volume in the spot market. The volume on a recent Thursday was lower than Dogecoin’s, while Pepe, Bonk, and Pudgy Penguins each had over $1 billion. Shiba Inu’s ecosystem is also struggling, with Shibarium holding a total value locked of just $2.3 million and its transaction growth declining. Its other tokens, such as BONE, TREAT, and LEASH, have also not gained traction.

Technical analysis signals that Shiba Inu may be on the verge of a bearish breakout. The Average Directional Index has tumbled to 18, a sign that the rally has no momentum. An ADX figure of 20 and below, especially when pointing downward, is usually a bearish sign. Further, Shiba Inu remains below the Supertrend indicator, indicating that this recovery is still weak. The coin also remains below the 50-day and 100-day moving averages. The biggest risk is that the ongoing rally is part of the handle section of the inverse cup-and-handle pattern, which often leads to a strong bearish breakdown. Therefore, the coin will likely have a bearish breakout in the near term. This view will be confirmed if it drops below the lower side of the inverse cup-and-handle, which could push it below a certain level.

The SHIB ecosystem shows notable development activity as whale transactions surge significantly in recent days, indicating heightened network engagement among large holders. This trend coincides with growing futures market activity, reflecting intensified institutional and speculative interest.

Regulatory developments appear relevant to SHIB's ecosystem positioning. Anticipation surrounds cryptocurrency legislation discussions scheduled for mid-July 2025 in the U.S. House of Representatives, including consideration of the Clarity Act which aims to establish regulatory frameworks for digital assets.

Shibarium, the Layer-2 solution built on Ethereum's network, continues strengthening SHIB's operational capabilities. Designed to alleviate network congestion and improve transaction efficiency, this infrastructure enhancement contributes to the token's evolving ecosystem functionality.

Technical analysis indicates SHIB trading within defined boundaries, with market observers noting consolidation patterns. Network fundamentals show vitality through transaction metrics, though derivatives markets reflect caution with open interest metrics suggesting a more conservative stance compared to certain competitors.

SHIB maintains its position in the crypto ecosystem as an ERC-20 token leveraging Ethereum's network, benefiting from that ecosystem's ongoing innovations. The project continues to demonstrate strong community support driven by active social media engagement.