Shiba Inu (SHIB) traded in a tight range Monday after a week of volatility that left the token down roughly 4% as broader crypto selling pressure took hold. On-chain metrics show the weekly burn rate jumped 237%, a spike analysts link to higher network activity and a potential easing of circulating supply.
SHIB Mortal pointed to the uptick in burn transactions as evidence of growing ecosystem usage. Crypto Patel framed the situation as a psychological shift: extended periods of depressed prices can offer accumulation windows for long-term investors if underlying structural improvements continue.
Crypto Lens noted SHIB is sitting on a historically important demand zone that has previously preceded major rallies. The token’s past cycles have included long consolidations followed by explosive moves—sometimes exceeding 1,000%—which has led some observers to argue SHIB may be entering another accumulation phase. The current consolidation period has lasted about 550 days, suggesting market compression may be maturing.
On the flows side, SHIB Crowd reported significant accumulation by large holders while the token trades far below its historical averages. Roughly 30 billion SHIB were withdrawn from exchanges in late March, which would reduce immediate selling pressure. In addition, transactions tied to a BitGo wallet totaled about 120 billion SHIB in early April, a pattern some interpret as favoring long-term holding rather than short-term selling.
Despite those dynamics, SHIB was trading near $0.000005979 at press time, still about 93% below its October 2018 peak of $0.000086. Vuori Trading suggested there remains room for a rebound toward previous cycle highs given that gap, adding that support levels around last summer’s lows remain intact. Vuori also assessed downside risks as limited and said the accumulation phase could persist into late Q4 or early Q1.
