Whales Accumulate SHIB as Burn Rate Plummets, Signaling Mixed Institutional Signals

Shiba Inu (SHIB) appears to be at a pivotal moment as whale activity suggests growing institutional interest, despite conflicting signals from key technical indicators. On August 28, large holders accumulated 359.6 billion SHIB tokens, a move typically interpreted as a bullish sign of long-term confidence in the asset [3]. However, this accumulation contrasts with a sharp 98.89% drop in the token’s burn rate during the same period, raising concerns about the sustainability of SHIB’s deflationary model [4]. Analysts warn that a diminished burn rate could reduce the downward pressure on supply, potentially capping future price appreciation [3]. Meanwhile, large holders have reduced their overall positions by over 181% in the past 30 days, indicating a broader, mixed institutional sentiment [4].

Technical analysis of SHIB’s price action shows a market in equilibrium. The Relative Strength Index (RSI) stands at 46.99, placing SHIB in neutral territory, while the Moving Average Convergence Divergence (MACD) signals bearish momentum, with both the MACD line and signal line in negative territory [4]. Stochastic indicators also reflect this indecision, with %K at 34.71 and %D at 29.80, placing SHIB in the lower half of its recent trading range but not at oversold levels [3]. Bollinger Bands analysis further suggests the token is trading below the middle band, a positioning often preceding either a downward move toward the lower band or a reversal back toward the mean [4].

Despite the technical uncertainty, the Shiba Inu ecosystem is expanding. Recent launches like ShibTorch, a new token burn mechanism aimed at addressing inflationary challenges, and the Shib DevPortal, a platform to streamline dApp development on Shibarium, are being cited as foundational improvements for long-term value. However, these initiatives have yet to translate into significant near-term price movement [4]. The 24-hour trading volume for SHIB on Binance is currently at $14.06 million, suggesting moderate but not exceptional market interest [3].

Investors are divided on whether to hold or divest SHIB. Conservative positions point to the whale accumulation as a positive signal for long-term value, while more aggressive traders are wary of the bearish MACD and declining burn rate [3]. Day traders are advised to remain cautious and focus on short-term volatility, whereas swing traders are urged to wait for clearer directional signals before committing larger positions [4]. The negative netflow trend among large holders further complicates the outlook, hinting at cautious sentiment even as whale buying persists.

As institutional investors navigate this uncertain environment, the coming 24–48 hours will be critical for SHIB’s price direction. A break below current support levels could lead to further downside, despite the long-term promise of ecosystem upgrades. Traders are urged to monitor these technical thresholds closely, with particular attention to whether the token can regain bullish momentum or face further consolidation.

Source: [1] Are you guys still holding coins like Pepe, Doge, Bonk ... (https://www.reddit.com/r/CryptoCurrency/comments/1n7h3g4/are_you_guys_still_holding_coins_like_pepe_doge/) [2] Whales Exit Shiba Inu and Pepe After Analysts Forecast ... (https://www.digitaljournal.com/pr/news/binary-news-network/whales-exit-shiba-inu-pepe-14037934.html) [3] SHIB Price Stalls Despite Whale Accumulation as ... (https://blockchain.news/news/20250903-shib-price-stalls-despite-whale-accumulation-as-technical-indicators-signal) [4] SHIB Price Stalls Despite Whale Accumulation as ... (https://blockchain.news/postamp?id=20250903-shib-price-stalls-despite-whale-accumulation-as-technical-indicators-signal)