Key Points
- Shiba Inu dropped 2.2% in the past 24 hours, lagging behind the broader crypto market, which only declined 0.7%.
- Persistent technical resistance near $0.00001168 and a position below the 30-day simple moving average continue to weigh on price action.
- Despite a dramatic 28,554% surge in token burns on October 27, market demand failed to respond, highlighting a disconnect between supply mechanics and price momentum.
- Investor sentiment remains subdued due to low trading volume, heightened scam alerts, and weakening performance across the altcoin sector.
- Shibarium activity shows promise, with daily transactions up over 700%, but this has yet to translate into meaningful price support.
- Bitcoin’s dominance at 59.1% continues to siphon liquidity away from speculative assets like SHIB.
Section 1: Technical Headwinds and Price Compression
Shiba Inu’s price trajectory remains locked in a bearish structure that began in mid-October 2025. The token currently trades beneath its 30-day simple moving average of $0.000011107 and struggles to break through a key resistance level at $0.00001168—the 23.6% Fibonacci retracement mark from its recent swing high. Technical indicators reinforce this stagnation. The 14-day Relative Strength Index hovers around 46.41, signaling neither strong buying nor selling pressure, while the MACD histogram stays in negative territory, underscoring persistent bearish momentum.
This technical setup has confined SHIB within a descending channel, where each attempted rally meets immediate rejection. Without a decisive move above $0.00001168 on a daily closing basis, the path of least resistance points downward. Analysts warn that failure to clear this level could trigger a retest of the June 2025 support zone near $0.00000956—a drop of roughly 8% to 10% from current levels. Traders are watching this threshold closely, as it serves as both a psychological and structural pivot for near-term direction.
Section 2: The Burn Paradox – Supply Reduction Without Demand Catalyst
On October 27, the Shiba Inu ecosystem recorded a startling 28,554% spike in its burn rate, with nearly 29 million tokens removed from circulation in a single day. While this event marked one of the most aggressive supply contractions in recent memory, the market response was muted at best. Instead of rallying, SHIB declined by 2.2%, underscoring a growing disconnect between tokenomics-driven narratives and actual price performance. Despite more than 410 trillion SHIB tokens burned since 2022, the circulating supply remains enormous—approximately 589 trillion tokens—diluting the marginal impact of even large burns.
What’s more telling is the accompanying shift in on-chain behavior. Exchange reserves for SHIB dropped by 62% within 24 hours of the burn event, suggesting that existing holders are withdrawing tokens to cold storage rather than new buyers entering the market. This pattern reflects hoarding rather than conviction-driven accumulation. Meanwhile, activity on Shibarium—the layer-2 solution designed to enhance SHIB’s utility—has surged, with daily transactions climbing 742% to around 10,000. If this uptick in network usage proves sustainable, it could eventually foster organic demand rooted in real-world application rather than speculative hype.
Section 3: Sentiment Fatigue and Macro Headwinds
Market psychology surrounding Shiba Inu has soured noticeably. The token’s 12% slide over the past month has eroded trader confidence, especially as volatility remains unusually low—evidenced by an RSI hovering near 40, a zone typically associated with apathy rather than opportunity. Compounding the issue, the Altcoin Season Index sits at just 27 out of 100, indicating a broad-based underperformance among non-Bitcoin assets. With Bitcoin dominance holding firm at 59.1%, capital continues to flow toward perceived safety, leaving speculative tokens like SHIB starved for liquidity.
Further dampening sentiment are recent security concerns. The Shiba Inu development team issued warnings about a wave of phishing attempts targeting holders, adding another layer of caution for retail participants. In an environment already characterized by low volume and risk-off behavior, such alerts amplify hesitation. Traders appear content to wait on the sidelines until clearer signals emerge—either from SHIB’s own technical structure or from broader market dynamics.
Conclusion
Shiba Inu’s recent underperformance stems from a confluence of technical bottlenecks, sentiment fatigue, and macro-level capital rotation toward Bitcoin. While supply-burning mechanisms and growing activity on Shibarium provide a foundation for long-term utility, they have yet to ignite short-term price momentum. The critical threshold of $0.00001168 remains the linchpin for any potential reversal. Should Bitcoin falter and dip below $112,500, the resulting risk-off cascade could push SHIB toward its June 2025 lows. Until then, the token remains trapped in a holding pattern—watched closely, but not yet trusted.
