Shiba Inu (SHIB) experienced a rapid 37% rally across two days, spurring a surge in retail trading activity as the cryptocurrency drew the spotlight on social media. However, blockchain data indicates that whales took advantage of the price move to sell large portions of their holdings near the local top.
Retail demand surges as whales sell
SHIB’s sharp climb was accompanied by a spike in large on-chain transactions. Data from analytics firm Santiment recorded 52 sizable transfers during the rally, the highest level since late March. This coincided with Shiba Inu’s social dominance jumping to 0.084%, reaching its highest point since early April as conversations about the token surged across online platforms.
The increase in whale activity suggests that major holders may have reduced their exposure while new retail entrants drove demand upward. Such movements can influence the token’s short-term price direction, as whales supplying large amounts of SHIB often cap additional gains, creating risk for late-moving retail buyers.
SHIB climbed 37% in two days as social dominance peaked, but whale activity also hit a multi-month high, implying major holders stepped in to sell during strong retail demand.
Amid the shift, SHIB’s price hovered around $0.000005 after giving back some gains, registering a 3.73% decline over 24 hours. Despite the pullback, daily trading volume reached $268.1 million, underscoring robust market engagement.
Token burn accelerates to record levels
Shiba Inu’s burn rate, an on-chain mechanism that permanently removes tokens from circulation, accelerated significantly. One transaction alone eliminated 62.5 million SHIB tokens within an hour. Over 24 hours, 2.19 billion SHIB were burned—a 427% increase—while the weekly figure soared 7,524% to 2.67 billion tokens.
This accelerated token burn is aimed at reducing overall supply, which may support SHIB’s long-term price stability. The SHIB burn community tracks and facilitates these burns, actively engaging users to take part in token-supply reduction efforts.
Mini dictionary: SHIB burn rate, the frequency and volume at which SHIB tokens are sent to a non-retrievable wallet, thus removed permanently from circulation to help decrease supply and potentially add price support over time.
Over 2.19 billion SHIB were burned in a single day, representing a significant increase in supply reduction as market activity intensified.
The ongoing burns have become a focal point for the SHIB community as they monitor the token’s supply dynamics and their potential impact on value.
Mixed technical signals after rally
Technical indicators present a divided outlook for SHIB following the recent rally. The price remains above the Bollinger Bands’ middle line near $0.00000435, closing in on the upper band, typically interpreted as a sign of strong momentum. At the same time, the MACD line moved above its signal line, with green histogram bars showing buyer strength.
Key resistance lies between $0.00000530 and $0.00000540. If SHIB closes above this zone, analysts anticipate potential targets up to $0.00000580 and $0.00000600. Strong support persists at $0.00000490, with deeper floors at $0.00000435 and $0.00000400 should downside pressure increase.
| Resistance | Support | Last Price | Daily Volume |
|---|---|---|---|
| $0.00000530-$0.00000540 | $0.00000490, $0.00000435, $0.00000400 | $0.000005 | $268.1 million |
In derivatives markets, SHIB’s funding rates remain close to neutral with a minor negative slant. The long-to-short ratio fell below 1.0, currently ranging from 0.88 to 0.90, giving a moderate edge to short sellers over leveraged bulls.
Market watchers are monitoring large holder activity, trends in social engagement, and developments in the derivatives segment as signals for SHIB’s likely direction in the days ahead.
