Whales Bet on SHIB as Burn Rate Fades and Market Waits for Clarity

SHIB Price Faces Mixed Signals as Technical and On-Chain Dynamics Diverge

Shiba Inu (SHIB) continues to exhibit a complex market profile as conflicting technical and on-chain indicators shape traders' sentiment. As of late August 2025, SHIB trades in a consolidation phase with a -0.56% 24-hour decline, while the Relative Strength Index (RSI) remains in neutral territory at 46.14. This suggests that the token is neither overbought nor oversold and could swing in either direction depending on emerging catalysts.

One of the most notable on-chain events in recent weeks was a 109% surge in SHIB trading volume on August 25, coinciding with a $749 million industry-wide drawdown. The following day, August 24, saw a significant 10 billion SHIB token outflow from Binance, often interpreted as a sign of reduced selling pressure and potential accumulation by long-term holders. This outflow has added to the intrigue among traders, who now watch for further signs that the token may break out of its current sideways movement.

Whale activity has also played a critical role in SHIB's price dynamics. On August 28, large holders transferred 359.6 billion SHIB tokens into cold storage, signaling long-term confidence and reducing immediate circulating supply pressure. This accumulation is in contrast to the declining burn rate, which has dropped by 98.89% in recent months, raising concerns about the sustainability of SHIB's deflationary mechanism. The burn rate has historically been a key narrative in SHIB’s value proposition, and its decline introduces uncertainty for investors focused on long-term utility and scarcity.

From a technical perspective, SHIB’s Stochastic indicators (%K at 33.33 and %D at 28.57) suggest potential oversold conditions, which could attract buyers if a reversal occurs. The token is currently trading in the lower portion of its recent Bollinger Bands range with a %B reading of 0.3067. This setup is typically seen before a volatility expansion, particularly when combined with the Average True Range (ATR) indicator, which suggests moderate volatility levels. Traders are advised to monitor SHIB’s price action around key support and resistance levels, with the pivot point at $0.00001221 serving as a crucial test for bulls.

The broader market context also weighs on SHIB's trajectory. The token's 0.82 correlation with Bitcoin means that its performance is closely tied to the macroeconomic landscape, including delays in Federal Reserve rate cuts and inflationary pressures. These factors could either suppress or amplify SHIB’s movements depending on Bitcoin's behavior. Meanwhile, the expansion of Shibarium, SHIB’s Layer 2 blockchain, has added functional utility by reducing gas fees and increasing daily transaction volumes to 3.82 million. These developments, along with token burns and DeFi integrations, are positioning SHIB as more than just a speculative asset.

Despite the mixed signals, some analysts remain cautiously optimistic. A Golden Cross, where the 50-day Simple Moving Average (SMA) crossed above the 200-day SMA in August 2025, has historically preceded bullish movements in SHIB. However, the bearish MACD and RSI divergence suggest that any rally may require strong volume confirmation to hold. Traders are advised to implement stop-losses and maintain risk-adjusted position sizes given the uncertainty surrounding SHIB’s immediate direction.

The coming 24 to 48 hours will be critical for SHIB as it navigates these conflicting signals. A breakout above key resistance levels with sustained volume could confirm a bullish reversal, while a retest of support would test the resilience of long-term holders. Investors are advised to closely monitor trading volume dynamics, whale activity, and broader market sentiment as these factors will likely determine SHIB’s near-term path.

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[1] SHIB Price Faces Mixed Signals as Technical Analysis Shows Neutral

[2] Shiba Inu (SHIB): A Bear Market Casualty or a Catalyst-Driven Recovery Candidate?

[3] SHIB Price Faces Mixed Signals as Whale Accumulation Counters Burn Rate Decline