Shiba Inu Token Burn Rate Surges 5762.9% Amid Retail Interest

Shiba Inu's recent deflationary efforts have seen a significant surge, with the 24-hour token burn rate increasing by 5762.9%, resulting in the incineration of over 26 million tokens. This intense burn rate is part of the community's efforts to restore confidence following price pullbacks. However, despite this aggressive deflationary measure, the price of SHIB only marginally decreased by 1.82% to $0.00001259, indicating that deflation alone is not sufficient to drive significant price movements.

On-chain data reveals a renewed interest from retail investors, with New Addresses increasing by 19.83%, Active Addresses rising by 9.41%, and Zero Balance Addresses surging by 29.38%. These metrics suggest a higher level of engagement and user activity within the SHIB ecosystem. However, the breakdown of transaction sizes shows a mixed sentiment, with sub-$1 transactions soaring by 238.46% while larger transactions, particularly those in the $1K–$10K and $10K–$100K ranges, dropping by 66.52% and 74.56% respectively. This indicates that SHIB is becoming more of a retail-heavy trade, but without significant whale participation, the upside pressure remains muted.

Technically, SHIB is currently consolidating within a demand zone between $0.00001028 and $0.00001196, a range that has historically attracted buying interest. However, the price remains capped below a descending trendline, maintaining a bearish structure. The Relative Strength Index (RSI) is at 41, indicating weak momentum without entering oversold territory. This suggests that while SHIB is not in extreme conditions, it could still dip lower before any substantial recovery.

Market flows indicate shifting sentiment among SHIB holders, with 7-day Exchange Inflows rising by 26.43%, suggesting some traders are moving tokens in, potentially to sell. However, outflows increased by 92.01%, nearly doubling the inflow rate. This sharp rise in withdrawals signals that a significant portion of holders prefer to self-custody their assets, often viewed as a bullish indicator of long-term conviction. When outflows notably outpace inflows, it tends to reduce immediate sell pressure and suggests investors are preparing to hold through volatility rather than exit positions.

Derivatives metrics show cautious optimism, with SHIB’s Open Interest-Weighted Funding Rate turning slightly positive at 0.0048%, indicating a tilt toward long positioning. Traders appear to be gradually favoring upside exposure, though the conviction remains low. The Liquidation Heatmap on OKX highlights key liquidity pressure between $0.0000132 and $0.0000133, where many short positions are vulnerable. If bulls can force the price above this range, it could trigger a wave of short liquidations, fueling upward momentum. Conversely, dense clusters near $0.00001208 could act as immediate support if the price dips.

In summary, SHIB’s sudden burn surge, rising address activity, and dominant outflows all point toward growing investor conviction. However, the lack of whale participation and persistent downtrend structure remain key hurdles. Until SHIB breaks above the descending resistance and clears the $0.0000133 cluster, upside may stay limited. Still, the groundwork for a recovery appears to be forming, with retail momentum and reduced supply laying early bullish foundations. Investors should remain cautious and monitor these developments closely before making any significant moves.