- SHIB’s massive 10,786% burn spike hasn’t sparked a real breakout, price is still capped below resistance.
- Despite bullish divergence and RSI bounce, SHIB stalls under 26 EMA with cautious buyer sentiment.
The burn rate for Shiba Inu (SHIB) has soared by a massive 10,786%, removing more than 9.5 million tokens from circulation, according to data from Shibburn. This unexpected surge has raised investor interest, but the price of SHIB has yet to show any strong upward response.
SHIB currently trades at $0.00001172, shows a 2.09% increase over the past day and a 2.5% gain in the past week. Although this uptick hints at some optimism, the overall market reaction remains restrained. IntoTheBlock data reveals that 88% of SHIB holders are still in the red, with their holdings below purchase value.
On June 25, SHIB bounced off a local bottom around $0.0000110, showing brief upward momentum. This movement coincided with a rise in the Relative Strength Index (RSI) from oversold conditions, a signal that has sometimes preceded recoveries in the past. Still, any early momentum soon stalled, and price gains remained capped.
Technical Barrier at $0.00001182 Continues to Hold
The 26-day exponential moving average (EMA), currently at around $0.00001182, serves as a ceiling for the token. The price movement has continuously stagnated at this level since early June, with sellers holding the upper hand whenever attempts were made to push higher.
While RSI and MACD show signs of recovery, the lack of confirmation above this key average keeps investors cautious. A clear break above the 26 EMA is necessary for a trend reversal.
On the derivatives side, interest appears to be building. According to Coinglass, open interest has risen by 4.89% to $142.91 million. The funding rate is 0.0082%, which indicates there’s a marginal leaning towards long positions.
Total liquidations during the last 24 hours were $135,340 — $87,330 in shorts and $48,020 in longs. The greater impact on short positions reflects some upward pressure in price, which aligns with the current sentiment reflected in funding rates. Short-term momentum remains cautious towards the upside side.
Analysts Watch Shiba Inu as Bullish Signs Start to Build
Bit Amberly, a closely followed analyst, has mentioned that the price of SHIB now trades in a descending channel. “The price is consolidating above the support zone after declining from upper resistance,” Amberly stated. This formation can influence future price action either if it supports or drops the channel.
Shiba Inu is shaping a descending channel on the daily timeframe💁♀️
The price is consolidating above the support zone after declining from upper resistance🔍
A breakout above the MA 50 could drive the price toward targets at $0.00001500, $0.00002050, and $0.00002420🎯 pic.twitter.com/GihaeaCPAW
— Bit Amberly (@bitamberly) July 6, 2025
Javon Marks, another analyst watching SHIB, reported that the token has “confirmed a clear Bullish Divergence with its MACD.” Marks indicated this can drive prices up nearly 180% and bring the crypto back to $0.000032. He believes this may not be the peak, suggesting further gains could follow.
While the burn activity has reduced supply quickly, token’s price remains stuck below key resistance. Chart patterns and analyst signals suggest a possible shift, but traders are waiting for a strong move above $0.00001182. Until that level is cleared, upward movement is expected to stay limited.
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