Whales Bet on SHIB’s Future as Burn Rate Crumbles and Bulls Watch Closely

SHIB price is at a critical juncture, with traders weighing conflicting signals from whale accumulation and technical indicators. Recent data show large holders have accumulated 359.6 billion tokens in cold storage, a sign of long-term confidence in the Shiba Inu ecosystem [3]. This whale activity could serve as a foundational support mechanism for SHIB price, yet it faces challenges from declining burn rates and bearish momentum signals [4].

The token burn rate for SHIB has dropped by 98.89%, raising concerns about the sustainability of its deflationary mechanics [3]. This sharp decline suggests that the token supply reduction mechanism, which is often a catalyst for price appreciation, is losing effectiveness. At the same time, the Shiba Inu ecosystem has introduced new infrastructure such as ShibTorch and the Shib DevPortal, aiming to address inflationary issues and streamline decentralized application (dApp) development on Shibarium [3]. These developments could contribute to long-term value creation, but their immediate market impact remains limited.

Technically, SHIB is trading in a neutral territory with its RSI at 46.99, indicating neither overbought nor oversold conditions [3]. The bearish MACD configuration, however, signals weakening buying momentum, with the histogram showing downward pressure on the price. The Stochastic indicators, with %K at 34.71 and %D at 29.80, place the token in the lower half of its recent trading range without indicating a potential bounce. Additionally, the Bollinger Bands analysis shows SHIB trading below the middle band, a positioning often preceding either a move toward the lower band or a reversal back toward the middle [4].

Despite these mixed technical signals, the market is not entirely bearish. SHIB has outperformed the broader crypto market in recent weeks, with a 2% increase since Tuesday afternoon [1]. This modest gain has positioned SHIB as the fifth-ranking memecoin by performance, trailing behind projects like WIF and leading DOGE. Weekly and monthly trading volume has also shown growth, with 3% and 5% increases, respectively [1]. However, the token’s performance has been inconsistent, with a 11% weekly loss noted recently [2]. Analysts suggest that this loss could be a precursor to a bullish breakout, with indicators like Chaikin Money Flow (CMF) showing growing market confidence [2].

Looking forward, the potential for SHIB to break out of its current consolidation phase depends heavily on institutional sentiment and macroeconomic trends. Whale behavior and ecosystem development are seen as key factors in determining the token’s trajectory. While large holders have reduced their positions by 181% in the past 30 days, creating a negative netflow trend, the recent accumulation by large holders demonstrates a nuanced outlook from institutional investors [3]. This duality in whale behavior adds complexity to the risk-reward analysis for traders.

If memecoin narratives gain traction and speculative flows dominate, SHIB could see a resurgence as a top performer in the cycle [2]. Analysts note that memecoins historically shine during late-cycle phases, and SHIB is likely to capitalize on such an environment. However, this potential comes with risks, as the token’s ability to maintain its deflationary mechanisms and ecosystem growth remains uncertain [3]. Traders are advised to monitor key support and resistance levels closely over the next 24–48 hours, as a break of current levels could trigger further downside despite the recent infrastructure improvements [3].

Source:

[1] SHIBA INU Price, SHIB Price, Live Charts, and Marketcap (https://www.coinbase.com/price/shiba-inu)

[2] Shiba Inu Price Prediction: Accumulation Phase Could ... (https://cryptodnes.bg/en/shiba-inu-price-prediction-accumulation-phase-could-trigger-massive-breakout/)

[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)