Shiba Inu (SHIB) reinforced its long-term deflationary narrative after its burn rate rose sharply over the past day.
Shibburn data showed that 12.47 million SHIB left circulation in the previous 24 hours, representing a 350.29% increased daily burns.
The network also removed 481 463 SHIB over the past hour as the seven-day burn total reached 44.23 million SHIB, reflecting a 32.63% weekly increase.
These figures highlight sustained efforts to reduce the supply of tokens in circulation despite relatively muted price action.
However, the decrease in supply did not immediately translate into greater price appreciation.
Instead, the burning activity reinforced SHIB’s long-term shortage narrative, leaving traders focused on whether demand would strengthen enough to capitalize on the token’s declining supply.
Currency outflows eased immediate selling pressure
Data on one-off flows revealed that capital continued to flow out of exchanges rather than into them.
SHIB recorded a negative net spot flow of approximately $175,050indicating that more tokens exited exchanges than entered during the last session.
Negative net flows generally indicate a reduction in immediate selling pressure as investors remove tokens from exchanges rather than preparing them for sale.
Even so, the relatively modest scale of the exodus suggests that conviction remained measured rather than aggressive.
Market participants continued to reduce available foreign exchange liquidity without triggering a large wave of buying.
As a result, the output data complemented the improved burn statistics and suggested that holders preferred accumulation over distribution.
However, stronger demand is still expected to emerge before SHIB can support a larger recovery.
Whale activity has quietly returned to the market
Large investors have become increasingly active in the SHIB spot market despite the sluggish pricing environment.
The average spot order size indicator continued to flash “Big Whale Orders,” showing that larger trades accounted for a greater share of executed trades.
This trend often reflects the participation of institutional or high-net-worth individuals rather than retail-focused activity.
Even though the market did not see a decisive breakthrough, whales continued to absorb liquidity as foreign exchange balances gradually declined.
This combination may indicate that the largest players are positioning themselves for longer-term evolution despite short-term uncertainty.
Retail participation remained relatively limited, but the whale-sized surge in orders suggested that savvy investors had begun to position themselves in anticipation of a potential directional move instead of waiting for confirmation after a breakout.
SHIB held key support as MACD improved
SHIB continued to trade in a descending channel after several weeks of higher highs and lower lows.
However, the price defended the $0.00000409 support zone while trying to stabilize above it, preventing another breakdown towards the lower boundary of the channel.
Immediate resistance remained close $0.00000450while a stronger barrier rose around $0.00000500both aligned with previous release zones.
The MACD reflects improving market conditions as the blue MACD line has climbed above the signal line while the histogram has moved closer to the neutral level.
Although a confirmed bullish crossover has yet to appear, selling pressure continued to fade throughout July.
If buyers maintain control above current support and the MACD makes a bullish crossover, SHIB could challenge $0.00000450 First of all.
A successful breakout above this level would likely expose $0.00000500. However, losing $0.00000409 could invite another decline in the descending channel.
Shiba Inu has combined stronger burning activity, continued FX outflows, and increasing whale participation into a more constructive market structure.
Together, these on-chain metrics indicate improving market conditions, although SHIB still needs a confirmed breakout to validate a broader trend reversal.
If buyers maintain current support and technical conditions continue to improve, SHIB may attempt to move toward $0.00000450 before targeting $0.00000500.
Final summary
- SHIB’s daily burn rate jumped over 350%, as currency outflows continued to ease near-term selling pressure.
- Rising whale-sized orders and improving momentum indicators indicate strengthening confidence, but a break above resistance is still needed.
