Shiba Inu (SHIB) has seen a 6% dip in its price on Friday, pulling back slightly after a strong recent rally. Despite this short-term correction, the broader outlook remains optimistic, fueled by surging token burn rates and encouraging technical indicators. While the market cools momentarily, key on-chain metrics and investor sentiment suggest that Shiba Inu may still be positioning itself for a sustained upward move.
Why Shiba Inu’s Burn Rate Is Sending Signals
One of the most compelling developments in the Shiba Inu ecosystem is the dramatic increase in its token burn rate. According to data from Shibburn, over 16.2 million SHIB tokens were burned in a single transaction within the last 24 hours — a spike that pushed the daily burn rate up by 114.5%.
Over the past week, the cumulative effect is even more impressive: 641.9 million SHIB tokens have been permanently removed from circulation, representing a 323.7% increase in weekly burn activity.
Token burns are a deflationary mechanism designed to reduce supply over time, potentially increasing scarcity and upward price pressure. When burns accelerate, it often signals growing network activity, community engagement, or strategic initiatives from development teams — all positive signs for long-term holders.
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Whale Movement Sparks Curiosity
On November 14, a major whale transaction caught the attention of analysts. A wallet holding over 7 trillion SHIB — making it the ninth-largest holder and representing 0.73% of total supply — transferred 4 trillion SHIB, valued at approximately $99 million, to a newly created wallet.
Both sending and receiving addresses are linked to BitGo, a well-known digital asset custodian. The receiving wallet shows only two recorded transactions, suggesting it may be part of a strategic reallocation rather than an immediate sell-off.
Large movements like this often trigger short-term volatility as markets interpret intent. However, since the funds remain within a trusted institutional infrastructure, fears of an imminent dump appear unfounded.
Such transfers could indicate preparation for staking, exchange listing adjustments, or structured investment strategies — all common practices among large holders in mature ecosystems.
Market Performance vs. Key Rivals
Despite strong fundamentals, Shiba Inu has underperformed compared to its main competitors in the meme coin space: Dogecoin (DOGE) and Pepe (PEPE).
Here’s a snapshot of current market performance:
Shiba Inu (SHIB):
- Price: $0.00002418
- Market Cap: $14.2 billion
- 24-Hour Change: -6%
- 7-Day Change: +27%
Dogecoin (DOGE):
- Price: $0.374
- Market Cap: $54.3 billion
- 24-Hour Change: -5%
- 7-Day Change: +90%
Pepe (PEPE):
- Price: $0.00002129
- Market Cap: $8.9 billion
- 24-Hour Change: +1.4%
- 7-Day Change: +109%
While SHIB’s weekly gain remains solid at +27%, DOGE and PEPE have shown significantly stronger momentum, especially driven by social sentiment and high-profile endorsements.
Still, Shiba Inu's lower price point and active ecosystem development continue to attract retail investors looking for high-potential exposure in the meme coin sector.
Technical Analysis: Bullish Patterns Emerge
From a technical standpoint, Shiba Inu shows several promising signals that suggest further upside potential.
The Relative Strength Index (RSI) currently sits at 64.7, indicating bullish momentum without entering overbought territory (typically above 70). This leaves room for continued buying pressure before any overextension occurs.
Additionally, on the Simple Moving Average (SMA) chart, the 50-day SMA has crossed above both the 100-day and 200-day SMAs — a configuration widely recognized as a "Golden Cross." This pattern is traditionally viewed as a strong bullish signal, often preceding extended uptrends.
Market participants interpret these developments as growing institutional and algorithmic interest, which can reinforce price stability and attract trend-following traders.
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On-Chain Activity and Holder Sentiment
On-chain data from IntoTheBlock reveals mixed but generally positive trends:
- Large transaction volume (> $100,000) has dipped by 2.7%, falling from 1,092 to 962 transactions in one day.
- However, daily active addresses have increased by 0.7%, signaling sustained user engagement.
- Approximately 59% of SHIB holders are now in profit, while 35% remain underwater despite the recent rally — a sign that many early investors are still waiting for higher price targets.
Meanwhile, the Shibarium layer-2 network continues to show resilience, with daily transaction volumes consistently exceeding $4 million since November 1. This steady throughput indicates ongoing utility and developer activity within the ecosystem.
A healthy blockchain isn’t just about price — it’s about usage. And Shibarium’s performance suggests that Shiba Inu is evolving beyond just a meme coin into a functional decentralized platform.
What’s Next for Shiba Inu?
The broader narrative around meme coins is gaining traction in mainstream financial discussions. The upcoming Future of Digital Assets event by Benzinga on November 19 will explore the role and potential of meme-based cryptocurrencies, including Shiba Inu’s place in the evolving digital economy.
As regulatory clarity improves and institutional adoption grows, projects with active communities, transparent development, and real-world utility — like Shiba Inu — may gain increased credibility.
Frequently Asked Questions (FAQ)
Q: Why did Shiba Inu drop 6% despite strong burn metrics?
A: Short-term price movements are influenced by multiple factors including market-wide corrections, profit-taking after rallies, and relative performance against other assets. Strong fundamentals like token burns don’t always prevent temporary pullbacks.
Q: Is Shiba Inu still considered a 'Dogecoin killer'?
A: While originally dubbed the "Dogecoin killer," Shiba Inu has evolved into more than just a DOGE competitor. With its own ecosystem (Shibarium), decentralized exchange (ShibaSwap), and NFT initiatives, it now competes across multiple dimensions of DeFi and Web3.
Q: How do token burns affect SHIB’s price?
A: Burns reduce circulating supply, increasing scarcity. Over time, if demand remains stable or grows, reduced supply can lead to upward price pressure. However, burns alone aren’t enough — they must be paired with real usage and adoption.
Q: What does the Golden Cross mean for SHIB traders?
A: The Golden Cross (50-day SMA crossing above 200-day SMA) is a long-term bullish indicator. It often signals the start of a new bull phase and is closely watched by algorithmic and institutional traders.
Q: Can Shiba Inu outperform Pepe and Dogecoin again?
A: Yes — momentum shifts quickly in the crypto space. With upcoming upgrades on Shibarium and potential catalysts like exchange listings or celebrity mentions, SHIB could regain leadership in the meme coin race.
Q: Where should I monitor SHIB burn data in real time?
A: Platforms like Shibburn provide live tracking of SHIB burns, wallet movements, and supply changes. These tools help investors gauge community activity and ecosystem health.
Final Thoughts
Shiba Inu’s 6% dip is best viewed as a natural consolidation after a strong rally. Behind the scenes, critical metrics — from soaring burn rates to whale movements and bullish technical patterns — point to underlying strength.
While Dogecoin and Pepe have stolen headlines recently, SHIB’s ecosystem development and community engagement remain robust. As the line between meme coins and functional blockchains continues to blur, Shiba Inu is positioning itself not just for hype, but for lasting relevance.
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Whether you're a long-term believer or a tactical trader, monitoring SHIB’s burn rate, on-chain activity, and technical structure can offer valuable insights into its next major move.