The bearish momentum of Shiba Inu is stalled - But before you buy the dip, pay attention to...

Shiba Inu (SHIB) has drawn attention significantly as the token burning rate in the past 24 hours rose to 5,762.9%, with over 26 million tokens being destroyed.

This increase reflects the strong deflationary efforts from the community, often accompanied by attempts to restore confidence after price drops. However, this time, the price of SHIB only decreased slightly by 1.82% to $0.00001259, indicating that the deflationary measures are not enough to positively impact the price.

Retail flow rises as whales withdraw

On-chain data indicates a return of retail investors. Over the past seven days, the number of new addresses has risen by 19.83%, active addresses have increased by 9.41%, and addresses with non-zero balances have grown by 29.38%. These numbers reflect an increase in users and a high rate of address change, which are typical signs of growing participation.

Source: IntoTheBlockHowever, the analysis of transaction sizes shows a mixed sentiment. Transactions under $1 have surged by 238.46%, while larger transactions have dropped significantly, with transactions from $1K to $10K down 66.52% and from $10K to $100K down 74.56%. This indicates that SHIB is becoming a primary trading option for retail investors, but without the participation of whales, leaving upward pressure still weak.

SHIB holds steady in the demand zone, but technical indicators show there is still plenty of room.

SHIB is currently consolidating in a defined demand zone between $0.00001028 and $0.00001196. This range has historically drawn attention for buying, providing potential support for a recovery. However, the price remains capped below a downward trendline, maintaining an overall bearish structure.

Source: TradingViewThe Relative Strength Index (RSI) is currently at 41, indicating weak momentum that has not yet entered the oversold territory. Therefore, although SHIB is not in an extreme situation, the current setup suggests it may drop lower before a significant recovery.

Do investors have the option to hold Shiba Inu**?**

Market cash flow indicates a shift in sentiment among SHIB investors. The inflow to exchanges over the past 7 days has risen by 26.43%, suggesting that some traders are moving tokens in — possibly to sell. However, the outflow has increased even more sharply, reaching 92.01%, nearly double the inflow rate.

The strong increase in this withdrawal indicates that a large portion of investors prefer to hold their assets themselves, which is often seen as a positive indicator of long-term confidence. When outflows significantly exceed inflows, this often reduces immediate selling pressure and shows that investors are preparing to hold firm through volatility rather than exiting their positions.

Are investors preparing for a new move?

The derivatives indicators show cautious optimism. The Funding Rate of SHIB's open interest has shifted to a slight positive at 0.0048%, indicating a trend leaning towards Long positions. Traders seem to gradually favor exposure to the upward trend, although confidence remains low.

Meanwhile, the liquidation heatmap on OKX highlights significant liquidity pressure between $0.0000132 and $0.0000133, where many Short positions are at risk. If investors can push the price above this range, it could trigger a wave of Short position liquidations, driving upward momentum.

Source: CoinGlass## Will the deflationary measures and network activity of SHIB stimulate a surge?

The sudden increase in token burning, heightened address activity, and dominant outflow indicate that investor confidence is rising. However, the lack of participation from whales and the bearish trend structure remain significant obstacles. Until SHIB breaks through the resistance level and clears the cluster at $0.0000133, the potential for price appreciation may remain limited. Nevertheless, the foundation for a recovery seems to be forming, with retail momentum and reduced supply establishing positive initial grounds.

Old Teacher