- SHIB holds above $0.0000043 support, trading around $0.0000044.
- Social dominance and funding rates turn positive, indicating bullish sentiment.
- Burn rate surges over 600% and exchange netflows turn negative, reducing sell pressure.
- Technical indicators show weakening bearish momentum, with potential upside to $0.0000046.
Shiba Inu (SHIB) is showing tentative signs of life after a period of decline. The meme coin has managed to hold above a critical support level, and a combination of on-chain metrics and derivatives data suggests that the selling pressure might be easing. While the broader crypto market remains uncertain, SHIB’s recent price action has caught the attention of traders looking for a potential bounce.
Over the past few days, SHIB has been trading around $0.0000044, having found support near $0.0000043. This level has become a battleground for bulls and bears, and the outcome could determine the token’s short-term direction. Let’s break down the factors that are influencing the current price movement.
Shiba Inu Price Action and Key Levels
On Wednesday, SHIB was seen trading at $0.0000044, recovering slightly from a retest of the daily support at $0.0000043. The token has been consolidating within a tight range, and technical indicators are starting to flash mixed signals. The Relative Strength Index (RSI) is hovering near 46, approaching the neutral 50 mark, which suggests that bearish momentum is losing steam. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing shrinking red histogram bars, another sign that downside pressure is fading.
If the support at $0.0000043 continues to hold, SHIB could extend its recovery toward the 50-day Exponential Moving Average (EMA) at $0.0000046. A break above that level would open the door for a more substantial rally. However, a daily close below the support would likely trigger a pullback to the next psychological level at $0.0000040. Traders are keeping a close eye on these levels as they could set the tone for the coming sessions.
On-Chain and Derivatives Metrics Turn Bullish
Beyond the price chart, on-chain data is painting a more constructive picture. Santiment’s Social Dominance metric, which tracks the share of SHIB-related discussions across crypto media, has been climbing since August 16 and stood at 0.016% on Wednesday. This uptick indicates growing interest and a more positive sentiment among meme coin investors.
Derivatives data also aligns with this improving backdrop. According to CoinGlass, the long-to-short ratio for SHIB reached 1.01 on Wednesday, meaning long positions slightly outnumber shorts. Additionally, funding rates flipped positive on Tuesday and were reading 0.0087% on Wednesday. Positive funding rates suggest that long traders are willing to pay shorts, a sign that the market is leaning toward bullish expectations.
Burn Rate and Exchange Flows Add to the Narrative
One of the most talked-about factors in the SHIB ecosystem is the burn rate. Over the past 24 hours, the burn rate surged by more than 618%, with 11.35 million SHIB removed from circulation. This marks the largest daily burn since late July, and over the last 30 days, a total of 3.35 billion SHIB have been burned. While the absolute dollar value is modest, the percentage spike is highly visible to traders and often fuels a scarcity narrative through token burns.
Exchange netflows have also turned negative, with 44.1 billion SHIB leaving exchanges in a single day. Earlier in the week, a massive 110.59 billion SHIB was withdrawn from exchanges, indicating that investors are moving tokens to self-custody. Exchange reserves, while still high at around 87.5 trillion SHIB, have started to edge down from their recent peak. This reduction in available supply on exchanges could ease immediate sell-side pressure.
Whale Activity and Shibarium Developments
Whale tracking accounts have reported an 850% jump in whale activity over the last day, and separate analytics data shows net whale inflows of about $14.69 million over 30 days, with a 55% buy ratio. This suggests that large holders are accumulating rather than distributing. Meanwhile, Shibarium, Shiba Inu’s layer-2 solution, has seen daily transactions rise to their highest level since early July, with network activity heating up and more smart contract deployments. These developments are often cited as potential catalysts for a breakout if usage continues to climb.
All these factors combined—supportive technicals, improving sentiment, a surge in burn activity, negative exchange netflows, and whale accumulation—paint a picture of a meme coin that might be gearing up for a rebound. However, the broader trend remains fragile, and a break below the $0.0000043 support would invalidate the bullish case. For now, SHIB appears to be at a crossroads, with traders watching key levels closely. The next few days could be crucial in determining whether this recovery has legs or if it’s just a temporary pause in a larger downtrend.