Shiba Inu's deflationary momentum has experienced a dramatic collapse, with the daily token burn rate falling 74% to just $11 worth of SHIB burned in the last 24 hours, totaling 2.34 million SHIB. This represents a significant decline from previous periods of stronger deflationary pressure, as the weekly burn rate dropped 21.77% despite 35.30 million SHIB burned, and the monthly burn rate fell 12.58% with 110.45 million SHIB burned. The reduced burn rate reflects weak market sentiment, with SHIB trading near recent lows and showing mostly negative price action. Despite retail initiatives, the combination of whale selling and weakened deflationary mechanics continues to weigh on SHIB's price performance.
Shiba Inu (SHIB) has declined 8.02% today to $0.0000041, falling below key moving averages and showing continued weakness against both short-term and long-term trend levels. The token remains under pressure amid ongoing whale selling and reduced deflationary momentum. According to latest reports, SHIB is trading in an expected range of $0.00000409–$0.00000431 amid high volatility, with technical indicators confirming a strongly bearish trend. The latest decline follows previous losses where SHIB was down over 9% for the week and more than 20% over the past month, with the token remaining far below its October 2021 all-time high of $0.0000862. SHIB's market cap is approximately $2.42 billion, placing it 37th by market cap, with the token down more than 26% over the past 30 days and nearly 65% over the past year.
A major Shiba Inu whale, described as the 'top SHIB donor', moved 600 billion tokens worth $2.83 million as part of a wider sell-off totaling 3.8 trillion SHIB, which increased circulating supply and amplified downward price pressure. This whale selling activity creates significant downward pressure on the token's price prediction, with the Crypto Fear and Greed Index at 22 reflecting current market sentiment. The remaining 96.2 trillion tokens, valued at roughly $433 million, still hang over the market as potential supply, contrasting sharply with retail-focused initiatives by major Japanese platforms like Rakuten Wallet. However, recent on-chain data shows a sharp reversal with exchange reserves snapping back to 80.5 trillion tokens in a single session, reversing months of steady outflows and creating additional supply pressure.
The latest whale behavior represents a significant shift from earlier accumulation patterns, as earlier in 2026, on-chain signals showed that mega-whale balances rose by roughly 28.5% even as the price fell, suggesting some large holders were buying dips rather than exiting. However, Thursday's deposit data points in a different direction, with the same whales now moving supply to exchanges, potentially shifting the accumulation thesis. With SHIB's price capitulation this month having already placed roughly 87% of holders in the red, a mass move to exchanges creates pressure from both sides - increasing supply available to sell while leaving fewer holders with profit to protect. This shift increases the supply available to sell, leaving fewer holders with profit left to defend the token's price action.
SHIB has shown a modest bounce after weeks of selling pressure, suggesting buyers are defending recent lows around $0.0000043–$0.0000044. However, the token remains in a strong downtrend, trading below major moving averages like the 50-day and continues to face headwinds from persistent whale selling and the recent exchange surge. The broader crypto market remains sluggish, and upcoming economic data on inflation may influence future trends for SHIB. Despite retail initiatives, the combination of weakened deflationary mechanics, continued whale selling pressure, and the recent exchange reversal creates a challenging environment for SHIB's price stabilization and recovery.
