- SHIB’s 2,408% burn spike and 3.37% netflow drop signals reduced supply pressure.
- Bearish whale activity and dense liquidations near $0.0000138 cap short-term upside.
Shiba Inu’s [SHIB] 24-hour burn rate skyrocketed by over 2,408%, eliminating nearly 40 million tokens from circulation and coinciding with a 3.37% drop in exchange netflows.
While the price climbed 2.69% during the same period, traders should exercise caution. Short-term optimism may be tied to this sudden burn activity, but its sustainability remains uncertain.
Therefore, although the shrinking supply hints at bullish pressure, the broader context must be weighed before assuming this move is the start of a larger trend.
A warning signal?
Despite short-term enthusiasm, all major on-chain indicators currently flash bearish.
At press time, net network growth remained positive but minimal at +0.17%, while the “In the Money” metric dropped by -4.29%, showing that fewer holders were in profit.
Concentration dipped by -0.03%, and large transactions fell by -4.18%, revealing weakening whale involvement. These metrics suggested that core network strength and smart money interest were fading.
This contradiction between price action and on-chain data may be a red flag for overextended bulls betting solely on recent burn momentum.
Source: IntoTheBlock
Will SHIB keep the $0.000013 support zone?
At pres time, SHIB appeared to be consolidating just above $0.00001311, struggling to break the 0.382 Fibonacci level around $0.00001461.
A bullish scenario would require reclaiming the $0.000014 range, where heavy resistance lies. Meanwhile, the MACD shows narrowing momentum, with a potential crossover forming.
However, failure to hold the $0.00001228 support could lead to a steeper correction, targeting the 1.618 Fibonacci level at $0.00000995.
So, price action remains precarious, hinging on the bulls’ ability to protect key short-term levels and flip resistance into support.
Source: TradingView
What rising address activity suggests
Despite bearish metrics, address statistics revealed notable user activity. New addresses jumped by 28.87%, while active addresses rose by 47.57%.
Moreover, zero-balance address creation surged by 117.39%, possibly indicating churn or short-term speculation. This spike may reflect growing retail interest or attempts to capitalize on recent volatility.
However, without matching improvements in whale participation and profitability metrics, these figures may not support sustainable growth.
Thus, while address momentum offers some optimism, it should not overshadow the weakening fundamentals seen on-chain.
Source: IntoTheBlock
Will dense liquidation zones trap bulls?
The 24-hour liquidation heatmap revealed high-risk clusters near $0.0000138, indicating aggressive short positioning. If SHIB breaks this level, cascading short liquidations could spark a rapid price spike.
Conversely, downside clusters between $0.0000126 and $0.0000124 present risk zones, where price could plunge if bulls lose control.
Therefore, volatility may increase as SHIB tests these key zones, with liquidation events potentially dictating the next major move. Traders should remain alert to how leveraged bets unfold over the next 48 hours.
Source: Coinglass
Can SHIB break out, or is the rally overstated?
SHIB’s surge in burn rate and user activity offers a bullish narrative, but the broader signals remain mixed.
On-chain metrics reveal weak whale activity, fewer profitable addresses, and shrinking large transactions, all of which suggest limited support for sustained growth.
Moreover, SHIB still trades below key resistance and faces liquidation risks near $0.0000138.
Bulls must push the price above $0.000014 with strong momentum to shift the current structure. Until then, the rally appears overstated, and the market may remain stuck in short-term volatility.
