Shiba Inu witnessed a significant increase in token burns at the start of July, with over 83 million SHIB eliminated in a single recent event and more than 3.2 billion destroyed throughout the month. Despite this aggressive reduction in supply, the token’s price struggled under selling pressure, signaling that short-term burns by themselves do not yet sway the vast circulating supply.
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SHIB burns, tracked by multiple on-chain monitors, are intended to reduce overall supply and potentially boost price by increasing scarcity. However, even sustained monthly burns in the billions have minimal impact on SHIB’s percentage of circulating supply, given the token’s massive scale.
As these burn events gained momentum, market data revealed that larger wallets were stepping in. Analysts observing blockchain flows noted accumulations from whale addresses, particularly during bouts of price weakness, a pattern that often signals quiet confidence among large holders.
This overlap of renewed burning activity and whale accumulation has drawn the attention of traders, who are now watching technical indicators to see if the trend can develop into a broader momentum shift. The immediate question is whether these factors are enough to alter SHIB’s established technical range.
Some chart watchers noted that SHIB has remained below a descending resistance line extending from its post-2021 highs. While recent price action suggests an attempt to stabilize and potentially reverse the trend, skeptics highlight similar scenarios in the past that failed to deliver sustained rallies.
Whale buying and market sentiment
The interplay between intensified burning and quiet whale buying signals heightened uncertainty about SHIB’s near-term direction. Investors noted that accumulation by large holders can precede rapid price moves. However, this only matters if follow-through demand emerges to support higher prices once the initial bounce fades.
In the wider meme coin landscape, these dynamics remain central to sector sentiment. When established tokens like SHIB show strengthening technicals, there is often a ripple effect, attracting more interest to the entire segment. Conversely, as new meme coins enter the market, liquidity can shift away from legacy projects, limiting their recovery potential.
Ultimately, while burn numbers have improved and whale activity is up, market participants say the true test will be whether SHIB manages a concrete breakout above major resistance levels. Analysts remain cautious, emphasizing that technical signals and real buying pressure must align for a sustained reversal.
Current trading signals show that whale accumulation and token burns have aligned, but analysts remain focused on whether this combination will spark a decisive breakout from SHIB’s long-standing resistance.
Shiba Inu, created in August 2020, is among the largest meme tokens in the cryptocurrency market, known for its dedicated community and high volatility.
Mini dictionary: Whale wallets, a term in crypto markets, refers to addresses that hold an unusually large amount of tokens compared to the average participant. Large moves by these wallets can influence price direction due to the sheer volume they control.
Traders will continue to monitor SHIB’s technical positioning alongside on-chain accumulation and burn rates, looking for clearer signals as market conditions evolve.
