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Shiba Inu Price Outlook Turns Cautious as Whale Positions Shrink and Burn Impact Fades
Shiba Inu (SHIB) has seen a modest 47% rebound from its monthly low, echoing broader market movements seen in Bitcoin and select altcoins. Over the weekend, SHIB rose to $0.000010, marking a 10% increase from its recent bottom. But despite the price uptick, growing concerns about token fundamentals, whale behavior, and technical signals are casting a shadow over the rally’s sustainability.
Burn Rate Nosedives by 99%
One of the biggest red flags for Shiba Inu’s recent recovery is the massive drop in its burn rate. According to on-chain data, only 69,530 SHIB tokens were burned in the past 24 hours — a staggering 99% decrease. Valued at less than $1, this burn figure reflects an ongoing slump in network activity.
This decline is largely tied to Shibarium, the project’s much-hyped Layer-2 blockchain. Shibarium’s total value locked (TVL) has plunged by 43% in the past 30 days, currently sitting at just $873,820. The situation worsened following a hack on ShibaSwap, Shiba Inu’s decentralized exchange, which further eroded trust and usage.
Although Shibarium boasts nearly 300,000 total accounts, the number of active users has collapsed to below 500. Network fee generation is also minimal — under $10 per day — which reduces the amount of BONE tokens (Shibarium’s gas token) being converted and burned as SHIB.
Whales and Smart Money Head for the Exit
Adding to the bearish pressure, whale investors and smart money traders are steadily reducing their SHIB exposure. Over the past 30 days, smart money wallets have cut their holdings by 10%, now owning 46.8 billion SHIB tokens.
Whale wallets show an even sharper exit. From October 12, large holders have trimmed their balances from 231 billion SHIB to 117 billion — nearly a 50% drop. This exodus from high-value players signals weak confidence in SHIB’s short- to mid-term prospects.
Technical Analysis: Rebound Lacks Strength
From a technical perspective, Shiba Inu’s chart paints a cautious picture. While the token has gained ground in the past three days, it remains firmly below critical resistance at $0.00001163 — the lower boundary of a descending triangle pattern.
The token is also trading beneath its 50-day and 100-day Exponential Moving Averages (EMAs) — a typical bearish signal. Moreover, momentum indicators like the True Strength Index (TSI) remain in negative territory, showing that the rebound lacks strong conviction.
The TSI, which utilizes two EMAs to assess trend strength, has shown no clear upward breakout, mirroring continued weakness across SHIB’s technical setup. Likewise, the trend strength indicator remains in decline.
If the current trend persists, SHIB may retest its year-to-date low of $0.00000695, especially if the broader crypto market fails to deliver meaningful support or bullish catalysts.
SHIB Underperforms Peers in the Altcoin Space
Even as SHIB enjoys a modest rebound, it has underperformed compared to rival altcoins like Zcash and Synthetix, both of which have seen stronger gains during the same period. This underperformance may be attributed to Shiba Inu’s massive supply issues, limited active development traction, and weakening community momentum.
Can SHIB Regain Its Spark?
With its burn mechanism faltering, whale support waning, and technical outlook weakening, Shiba Inu finds itself at a critical juncture. Once a meme-fueled powerhouse with rapid price surges and viral community buzz, SHIB must now grapple with real-world challenges of utility, scalability, and investor retention.
While the 47% bounce from recent lows offers a glimmer of hope, the underlying data signals caution. Unless Shiba Inu’s team can revive Shibarium, accelerate token burns, and re-engage large investors, the rally may prove short-lived.
