Despite a notable slowdown in its token burn rate, Shiba Inu (SHIB) has recently captured market attention with a surprising price surge, signaling a potential shift in investor sentiment. While the meme coin’s deflationary mechanism faces headwinds, on-chain data points to robust accumulation by large holders, commonly known as whales, painting a complex yet intriguing picture for the popular digital asset.
The Paradox of Declining Burns
A core tenet of SHIB’s long-term value proposition has been its burn mechanism, which aims to reduce the circulating supply and theoretically increase scarcity. However, recent data from Shibburn, a tracking service, reveals a significant deceleration in this activity. Over the past 24 hours, the daily SHIB burn metric plummeted by 92,10%, with a mere 207.156 SHIB tokens removed from circulation. The seven-day aggregate shows an even steeper decline of 96,68%, though a total of 20.923.735 SHIB were burned during this period. This sharp contraction raises questions about the efficacy of current burning efforts and their immediate impact on supply dynamics.
Price Momentum Defies Expectations
In contrast to the subdued burn rates, SHIB’s market performance has been remarkably bullish. Since Friday, the token’s price experienced an impressive surge of approximately 9%, climbing from $0,00001285 to an intraday peak of $0,00001401. This uptick aligns with broader positive movements in the cryptocurrency market, particularly Bitcoin’s recovery to the $117.000 level. The market’s renewed optimism was partly catalyzed by a recent executive order signed by U.S. President Donald Trump, paving the way for 401(k) funds to explore investments in real estate and various cryptocurrencies, with Bitcoin notably at the forefront. While SHIB has seen a slight correction from its peak, the underlying buying pressure remains evident.
Whale Activity Signals Bullish Conviction
Further reinforcing the positive sentiment is the dramatic increase in large holder netflows. According to data from IntoTheBlock, Shiba Inu has seen a staggering 643% surge in this metric. Large holder netflows indicate the change in position of significant holders, and a spike suggests substantial accumulation by whales. This inflow of capital from major players is often interpreted as a bullish signal, indicating that sophisticated investors are positioning themselves for potential upward movement.
Technically, SHIB is currently testing a crucial resistance level at its 200-day Simple Moving Average (SMA), which sits at $0,00001371. Overcoming this barrier is paramount for the token to sustain its bullish momentum and potentially target higher price points at $0,000016 and then $0,00002. The token has shown resilience, rebounding steadily since August 2nd from a low of $0,0000116, and notably surpassing its 50-day SMA at $0,00001277 on August 6th.
Anticipating the Altcoin Season
Looking ahead, members of the Shiba Inu team are voicing ultra-bullish predictions, anticipating an imminent “altcoin season”—a period where alternative cryptocurrencies outperform Bitcoin with significant price jumps. Lucie, a prominent SHIB team member, recently highlighted that while the CoinMarketCap Altcoin Season Index currently stands at 40 (signaling a prevailing Bitcoin season), it needs to cross 75, accompanied by a drop in Bitcoin dominance, to officially enter an altseason. With Bitcoin dominance currently at 59,3% and Ethereum gaining traction, crossing $4.200 for the first time since December 2021 to reach $4.247, the foundational elements for an altseason appear to be forming. Lucie suggests that the market is likely undergoing an accumulation phase, hinting at a classic August pattern, with eyes set on September for a potential breakout.
The confluence of whale accumulation, a strong price rebound, and the looming prospect of an altcoin season provides a compelling narrative for Shiba Inu, even as its burn dynamics navigate a challenging phase. Investors will be closely watching for SHIB to surmount key technical resistance levels and for broader market conditions to align with the anticipated altcoin surge.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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