TLDR
- SHIB burn rate has dropped by 82% in the past 7 days, trading at $0.00001095
- SHIB price hit a 13-month low on Monday, dipping below $0.00001 for the first time since February 2024
- Despite price decline, whale investors acquired 874 billion SHIB tokens following Trump’s trade tariff announcement
- Technical indicators show SHIB trading near oversold territory with RSI at 34.90, suggesting potential for a rebound
- 89.95% of SHIB holders are currently at a loss while exchange netflow indicates tokens moving out of exchanges, suggesting accumulation
Shiba Inu (SHIB) has experienced a sharp price decline, dropping below the $0.00001 threshold for the first time since February 2024. This 13-month low comes amid a steep 82% decrease in the token’s burn rate over the past seven days.
The memecoin was trading at $0.00001095 as of April 10, reflecting a 2.23% decline. The price dip has raised questions about whether SHIB’s popularity is fading or if the token is merely consolidating before another move.
Market analysts attribute the downturn to macroeconomic factors, particularly escalating trade tensions following former U.S. President Donald Trump’s announcement of new tariffs on Chinese imports last Wednesday.
After Trump ruled out a diplomatic resolution, SHIB price plunged toward $0.000010 on Monday, marking its lowest point in 13 months.
However, the price promptly rebounded 4% to reclaim $0.000014, positioning itself above the Volume Weighted Price for the day. This signals that after an initial sell-off, SHIB attracted a cluster of buy orders as trading progressed.
Whale Investors Seize Opportunity
Interestingly, large-scale investors—commonly known as crypto whales—have capitalized on the ongoing dip. On-chain data shows whales have made more SHIB purchases than sell-offs in recent days.
These whale investors acquired a staggering 874 billion SHIB tokens since Trump’s trade tariff announcement. At current prices, this purchase is valued at approximately $10.4 million.
The IntoTheBlock Large Holder Netflow, which tracks the daily net change in balances of wallets holding at least 0.1% of the total SHIB supply, reveals that large wallets collectively purchased over 874 billion tokens between April 2 and April 6.
This accumulation began shortly after Trump’s announced tariffs on April 2, suggesting whales may view geopolitical unrest as a buying opportunity.
Since large investors often use sophisticated cold storage options, this persistent whale buying trend indicates that SHIB’s short-term supply on exchange-hosted wallets could be thinning out.
Technical Indicators Show Mixed Signals
SHIB recently bounced from a key accumulation zone between $0.00001035 and $0.00001393, where demand has consistently supported price action.
After months inside a falling wedge, the breakout suggests early signs of bullish momentum. The RSI was 34.90 at press time, indicating that SHIB traded near oversold territory, a region often linked with rebound opportunities.
However, bulls must reclaim the $0.00001393 resistance to confirm this shift. Failure to do so may result in a retest of the $0.00001035 support, with a possible slide toward $0.00000800 if buyers lose control.
The Chande Kroll Stop indicator has flipped below current price, suggesting minimal short-term selling pressure. However, the resistance ceiling at $0.000015 looms, and failure to reclaim this level could confirm the next downtrend.
Exchange netflow was at -156.65 billion SHIB, indicating a 3.2% drop net outflow. This means more tokens are moving out of exchanges than into them, which typically suggests accumulation.
Long-term holders may be positioning themselves for a potential rally. This behavior often precedes bullish breakouts when combined with price consolidation.
Holder Sentiment and Liquidations
According to the In/Out of the Money chart, 89.95% of holders were at a loss at press time, while only 9.37% remained in profit.
The largest concentration of addresses was slightly above this price, which means any upward movement will likely face heavy selling as investors exit their positions at breakeven levels.
Only 0.67% of SHIB holders were at the money, showing that current entries are highly risky without a clear bullish trigger.
In terms of liquidations, SHIB saw $305.51K in long liquidations compared to $85.73K in short liquidations. Although longs took a bigger hit, the market remains active, and shorts are starting to get squeezed.
Bears are not fully in control, and any surge in price may trigger a short squeeze. The presence of long interest shows that some traders are already betting on a bounce.
If bulls can defend the current support, momentum could flip in their favor, potentially leading to a price reversal for the popular memecoin.
The drop in burn rate, coupled with price action and whale accumulation patterns, suggests SHIB is in a consolidation phase rather than a terminal decline. Market participants are watching closely to see if this accumulation will translate into upward price movement in the days ahead.
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