Shiba Inu Price Prediction: Can Bulls Push SHIB Higher as Burn Rate Exceeds 41%?

Shiba Inu Price Prediction: Can Bulls Push SHIB Higher as Burn Rate Exceeds 41%?

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  • SHIB holds above recent lows, but key EMAs continue to reinforce bearish pressure.
  • Falling open interest signals cautious traders awaiting stronger bullish confirmation.
  • Token burns and steadier exchange flows hint at gradual long-term recovery potential.

Shiba Inu (SHIB) continues to face strong bearish pressure as the token attempts to establish a stable base after a prolonged decline. The SHIB/USD daily chart shows price trading near $0.00000419, slightly above the recent low of $0.00000404. Although sellers have slowed their momentum, buyers have not yet gained enough strength to trigger a meaningful recovery. 

SHIB Price Action Remains Under Bearish Control

SHIB continues to trade below the 20-day, 50-day, 100-day, and 200-day exponential moving averages. These indicators confirm that the broader market structure remains bearish. The 20-day EMA at $0.00000425 and the 50-day EMA near $0.00000454 currently act as immediate resistance levels.

Moreover, the 100-day EMA at $0.00000503 and the 200-day EMA around $0.00000607 highlight the long-term challenges facing SHIB bulls. The recent daily candles show limited price movement and tight consolidation. This pattern suggests sellers have lost some strength, but buyers still need stronger momentum.

Shiba Inu Price Dynamics (Source: Trading View)

The Directional Movement Index also reflects a cautious outlook. The ADX reading of 22.37 indicates a moderate but weakening trend. 

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Meanwhile, the -DI remains higher at 25.91 compared with the +DI at 16.55. Hence, bears still maintain control, although the narrowing gap suggests selling pressure continues to fade.

Open Interest Decline Signals Reduced Speculation

Shiba Inu’s derivatives market has experienced major fluctuations alongside price movements. Open interest increased sharply during previous rallies, reaching above $500 million as traders increased leveraged positions.

Source: Coinglass

However, those increases quickly reversed during market corrections. Traders closed positions, and liquidations reduced speculative exposure. Recently, open interest has fallen significantly to approximately $32.96 million.

This decline indicates weaker trader confidence and reduced activity in the futures market. Additionally, lower leverage suggests investors remain cautious while waiting for clearer signals. A recovery in open interest alongside rising prices could indicate renewed market participation.

Exchange Flows Show Early Signs of Stabilization

SHIB’s spot market activity shows a gradual improvement in sentiment. Earlier periods recorded heavy net outflows, with several negative spikes exceeding $7 million. These movements reflected increased selling pressure during the price decline.

Source: Coinglass

Nevertheless, exchange flows have become more balanced recently. The latest data shows a modest net inflow of approximately $419.78K. This suggests buyers are slowly returning, although accumulation remains limited.

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Moreover, the reduced volatility in inflow and outflow patterns indicates that both buyers and sellers are waiting for stronger market confirmation.

Burn Activity Supports Long-Term Supply Reduction

Shiba Inu continues to reduce its circulating supply through its burn mechanism. According to shibburn data, around 410.84 trillion SHIB tokens have permanently left circulation, representing 41.08% of the initial one quadrillion supply.

The remaining supply stands near 589.16 trillion SHIB, with circulating supply around 585.62 trillion tokens. Significantly, these burns demonstrate the project’s long-term effort to create scarcity.

However, supply reduction alone may not drive immediate price growth. SHIB needs stronger demand, improved market sentiment, and a break above key resistance levels.

Technical Outlook for Shiba Inu Price

Key technical levels remain clearly defined as SHIB trades near a critical support zone:

Upside levels: Immediate resistance lies at $0.00000431–$0.00000436, followed by $0.00000448 and $0.00000475. A sustained breakout above $0.00000495 could clear the path toward the 100-day EMA at $0.00000503, while a stronger rally may eventually target the 200-day EMA near $0.00000607.

Downside levels: Initial support sits at $0.00000404, followed by the $0.00000400 psychological level. A daily close below this area could accelerate losses and extend the prevailing downtrend.

Resistance ceiling: The 100-day EMA at $0.00000503, followed by the 200-day EMA at $0.00000607, remains the major barrier that bulls must reclaim to shift the medium-term trend.

The technical structure suggests SHIB is consolidating after an extended decline. Price volatility has contracted, while the narrowing gap between the DMI indicators shows bearish momentum is gradually fading. However, buyers still need stronger volume and broader market support before a confirmed trend reversal can develop.

Will Shiba Inu Price Recover?

Shiba Inu’s near-term outlook depends on whether buyers can continue defending $0.00000404 while building enough momentum to overcome the $0.00000448–$0.00000475 resistance zone. Improving spot inflows and slowing selling pressure provide early signs of stabilization, although declining open interest shows speculative demand remains subdued. 

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If SHIB breaks above $0.00000495 and reclaims the 100-day EMA, bullish momentum could strengthen and pave the way toward $0.00000607. However, a breakdown below $0.00000404 would invalidate the current base-building attempt and increase the risk of fresh lows. For now, SHIB remains at a decisive technical crossroads, with the next major move likely depending on renewed buying interest and improving market sentiment.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.