TLDR
- SHIB recently fell below its mid-range support level at $0.0000129
- Technical analyst Javon Marks predicts a potential 528% surge to $0.000081
- Exchange outflows since January suggest accumulation despite whale selling
- Hidden bullish divergence forming on SHIB’s chart signals underlying strength
- Burn rate increased dramatically with 313,950,965 tokens burned last week (324.14% increase)
Shiba Inu (SHIB), the popular memecoin, is currently trading within a two-month range formation, showing mixed signals as it recently slipped below a key support level. The cryptocurrency, which trades at $0.0000129, has experienced a slight dip of 0.4% from its intra-day high, with technical data suggesting bears have been gaining control in recent days.
The memecoin failed to defend its mid-range support at $0.0000129, indicating it may be more likely to fall toward range lows than push toward range highs in the short term. This breakdown follows what has been a challenging period for SHIB holders.
Despite these bearish short-term signals, not all metrics paint a negative picture for the popular token.
Exchange net position change has remained negative since January, suggesting more tokens are leaving exchanges than entering them. This pattern typically indicates reduced selling pressure and ongoing accumulation, contrasting with the high exchange inflows seen in December that marked the rally’s top.
Recent funding rate data shows an increase in bearish sentiment, with rates dropping below zero. Simultaneously, Open Interest has fallen since April 26, pointing to waning bullish conviction among traders.
SHIB Price
Long-Term Holder Growth
On-chain analysis reveals encouraging trends for SHIB’s longer-term outlook. The number of long-term holders—those who have held SHIB for over a year—has steadily increased since mid-2022 and continues to rise into 2025, according to data from IntoTheBlock.
This growth in long-term holders is particularly important as these investors typically reduce overall selling pressure, helping maintain price stability. Meanwhile, short-term traders (holding less than a month) have decreased by 36.5%, suggesting a shift away from purely speculative behavior.
Medium-term investors, or “cruisers” with holding periods between one and twelve months, have grown by 3.15%. This indicates more investors are adopting longer-term positions rather than seeking quick profits.
Active addresses saw a surge in early May, though activity has since decreased. While consistent high activity might indicate sustained demand, sporadic spikes often point to selling pressure. When combined with exchange outflows, the current pattern could suggest a period of accumulation.
The mean coin age has lacked a strong uptrend over the past month, unlike the January-March period when steady increases signaled network-wide accumulation. Recent dormant circulation metrics show small waves of token movement, reflecting modest selling pressure on-chain.
Technical analyst Javon Marks has made headlines with a bold forecast for SHIB, predicting a potential 528% surge that would take the token to $0.000081. This projection comes after SHIB successfully retested a breakout level following its rally to a seven-month high of $0.00003329 in December 2024.
We maintain our $0.000081 breakout target for $SHIB (Shiba Inu), projecting a nearly +500% uphill run to reach it… https://t.co/8OdILFYB5q pic.twitter.com/jTxSAGqiWA
— JAVON⚡️MARKS (@JavonTM1) May 3, 2025
According to Marks, the subsequent pullback to $0.0000108 was part of a normal technical structure that sets the stage for a more substantial rally. A key factor behind this bullish outlook is the hidden bullish divergence forming on SHIB’s chart, which typically signals underlying strength even when short-term indicators show weakness.
Another factor contributing to positive sentiment is SHIB’s increasing token burn activity. Recent data from Shibburn shows a sharp rise in SHIB burns, with 2,219,043 tokens burned in 24 hours—a 278.42% increase. Over the past week, an even more impressive 313,950,965 tokens were removed from circulation, marking a 324.14% increase in the burn rate.
The burn mechanism reduces SHIB’s circulating supply, which, when combined with consistent demand, can lead to upward price movement. As more tokens are burned, SHIB becomes scarcer, potentially supporting its long-term value if demand remains steady or increases.
The 30-day MVRV ratio has returned to negative territory, which could be an early sign that selling pressure from short-term holders is waning. This metric often provides a window for consolidation and accumulation before a new price move begins.
