DeFi & NFT
By Evie Vavasseur
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The cryptocurrency space is no stranger to wild price swings and unexpected events, and once again, Shiba Inu (SHIB) is at the center of attention.
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Short-Term Optimism Fueled by Burn Activity
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Any reduction in token supply generally invites optimism in crypto markets, and SHIB’s recent burn has been no exception.
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However, experienced traders are warning against reading too much into this. A one-day surge in burning doesn’t automatically signal a long-term uptrend.
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While the price and burn rate hint at a bullish shift, on-chain data tells a more sobering story.
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Another warning sign is the declining activity among large holders, often referred to as whales.
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SHIB is currently trading just above $0.00001311 and facing strong resistance near the $0.00001461 level, which corresponds to the 0.382 Fibonacci retracement zone.
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On the flip side, if support at $0.00001228 fails, the price could see a more significant drop, potentially targeting levels as low as $0.00000995.
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Retail Activity Is Growing—but Is It Enough?
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In contrast to waning whale interest, SHIB is experiencing a surge in retail activity. The number of new wallet addresses has jumped by nearly 29%, and active wallet addresses…
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While this growing participation among smaller traders is a positive sign, it may not be enough to offset the bearish signals from larger market participants.
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Liquidation Zones Add Volatility to the Mix
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Data from trading platforms shows that SHIB is hovering near high-risk liquidation zones. Many short positions are concentrated around the $0.
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These liquidation clusters suggest that SHIB could experience sharp price swings in the near term, depending on how the token reacts to these key pressure points.
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Conclusion: A Promising Signal or Just Noise?
The Currency Analytics
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