- SHIB’s whale transactions dropped 79% in three months, aligning with its 50% price decline since December 2024.
- Futures funding rates show mixed sentiment, with occasional negative rates signaling increased short interest.
- SHIB’s weekly burn rate surged 119.78%, but daily burns fell 60.52%, highlighting fluctuating supply reduction efforts.
Shiba Inu (SHIB) has faced bearish sentiment in recent months, with its price dropping substantially since early December 2024. The second largest memecoin by market cap, which holds a fully diluted valuation of approximately $9.5 billion, has lost over 50% of its value during this period. On February 22, SHIB was trading at $0.00001542, down 2.32% in 24 hours.
Whale Activity Declines as Market Cools
According to analyst Ali, whale transactions on the Shiba Inu network have dropped by 79% over the past three months. Whale activity peaked in early December 2024, coinciding with a price surge to $0.000033.
However, large transactions declined sharply as the price began to fall. Occasional spikes in whale movements were observed in mid January and early February, suggesting strategic accumulation at lower prices.
The downturn in whale transactions aligns with SHIB’s broader price movement. After reaching its December peak, the asset entered a downtrend, forming lower highs and lower lows.
By February, the price stabilized around $0.000016, hinting at potential consolidation. If whale activity resumes, it could indicate renewed interest in the asset, influencing future price trends.
Futures Market Shows Mixed Sentiment
SHIB’s funding rate in the futures market has had fluctuations, indicating shifting trader sentiment. Between late November and early December 2024, the funding rate surged to peaks of 0.0900% to 0.1200%.
This suggested aggressive long positions as SHIB’s price increased. By December 8-10, the funding rate declined sharply, briefly turning negative as the price dropped. This shift indicated liquidations and a transition to bearish sentiment.
Throughout January, the funding rate remained near neutral levels, with minor increases aligning with small price recoveries. February saw increased volatility, with occasional negative funding rates suggesting growing short interest.
If the funding rate rises again, it may show increasing long positions, potentially pushing SHIB higher. However, persistent negative rates could indicate continued short pressure, keeping the price range bound.
Burn Rate Surges Despite Market Slump
Shibburn data shows SHIB’s total supply is at 589.25 trillion tokens, with a market cap of $9.08 billion. Over the past 24 hours, 13.82 million SHIB tokens were burned, a 60.52% drop in daily burns. However, the weekly burn rate surged by 119.78%, with 128.12 million tokens removed from circulation.
SHIB’s price is within key technical levels. The asset has resistance at $0.00001581 and upper Bollinger Band resistance at $0.00001694. Support is at $0.00001467, aligning with the lower Bollinger Band. The RSI is at 40.51, with weak but recovering momentum.
SHIB’s price movement will likely depend on whale activity, futures market sentiment, and continued token burns. A breakout above $0.00001581 could push the price to further gains, while failure to hold support at $0.00001467 may lead to further declines.
