Shiba Inu Price Update: SHIB Burn Rate Drops 92% in 24 Hours, What’s Next?

In the last 24 hours, the Shiba Inu (SHIB) burn rate dropped by a staggering 92%. This sharp slowdown has raised questions in the crypto space. Has the SHIB hype faded, or is this just a pause before a potential rally? While the decline in token burns may seem alarming, key insights into Shiba Inu price action, holder sentiment, and market trends suggest the story isn’t so simple.

A Major Burn Rate Drop, But Not the End

The 92% plunge in SHIB’s burn rate is one of the biggest weekly slowdowns seen recently. Naturally, this has sparked speculation. 

However, a slowdown in burns doesn’t always signal the end of a token’s momentum. Sometimes, it’s simply a breather before a turning move. And based on current market activity, SHIB still has life left in it. The Shiba Inu price currently sits at $0.00001173, up 9.87%, but technical indicators point toward a possible shift.

Shiba Inu Price Near Support: A Bounce in the Making?

Interestingly, SHIB recently bounced from a strong demand zone between $0.00001035 and $0.00001393. This zone has historically supported the price well.

After staying in a falling wedge pattern for months, the recent breakout is a small but significant signal of bullish potential. With the Relative Strength Index (RSI) at 34.90, SHIB is in oversold territory, a level that often sparks rebounds.

Still, bulls need to reclaim the $0.00001393 resistance. If they fail, we could see another drop to the $0.00001035 support level or even further to $0.00000800 if sentiment weakens.

Most SHIB Holders Are in Loss: Can They Stay Patient?

Right now, 89.95% of SHIB holders are sitting on losses. Only 9.37% are in profit, and a mere 0.67% are at break-even.

This makes the current SHIB price highly sensitive. Even a small move upward might face heavy selling, as many holders could cash out once they break even. This selling pressure can limit price rallies unless there’s strong new demand in the market.

Exchange Activity Shows Accumulation

Despite the burn rate drop, exchange netflow tells a different story. With a net outflow of -156.65 billion SHIB (a 3.2% drop), more tokens are being taken off exchanges. This often means accumulation by long-term holders.

While this is a positive sign, it’s not enough on its own to drive the Shiba Inu price higher. A real rally needs new interest and buying volume to join the action.

Liquidations Reveal a Tense Battle Between Bulls and Bears

SHIB saw $305.51K in long liquidations and $85.73K in short liquidations recently. While longs took more damage, short traders are starting to feel the pressure too.

This means the market isn’t controlled by bears. If bulls can defend current support levels, there’s potential for a short squeeze, which could push the Shiba Inu values higher.

Final Thoughts: Is SHIB Done or Just Getting Ready?

The memecoin hype isn’t dead; it’s consolidating. The current Shiba Inu price action, holder behavior, and whale accumulation all point to preparation for a possible breakout. While the drop in burn rate may worry some, market signals suggest SHIB is more likely to bounce than crash.