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SHIB Struggles Amid Bearish Momentum Despite Aggressive Token Burns

SHIB Struggles Amid Bearish Momentum Despite Aggressive Token Burns

Author:
SHIB News
Published:
2025-08-04 22:15:37
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Shiba Inu (SHIB) faces intensified bearish pressure in August 2025, with its price decline accelerating despite significant token burn efforts. Over 600 million SHIB tokens were removed from circulation through a burn campaign that saw a staggering 16,000% increase in the burn rate. However, these measures have failed to counteract the prevailing selling pressure in the market. Technical indicators across various timeframes suggest that the downtrend is likely to continue, leaving investors and analysts concerned about SHIB's near-term prospects. The inability of burn mechanisms to stabilize the price highlights the challenges facing the meme coin as it battles market skepticism and weak demand.

Shiba Inu Bearish Trend Deepens Amid Failed Burn Efforts

Shiba Inu's downward spiral accelerated in August 2025, defying expectations that aggressive token burns WOULD stabilize its price. Over 600 million SHIB were removed from circulation through a burn campaign that increased the burn rate by 16,000%, yet selling pressure continues to dominate market activity.

Technical indicators across multiple timeframes suggest the bearish trend will persist. Market analysts note that burn mechanisms alone cannot counteract broader macroeconomic forces driving SHIB's decline. The token's performance has become a case study in the limitations of supply reduction strategies during sustained market downturns.

Shiba Inu Whale Nets $6.05 Million Profit from $3,800 Investment

A shiba inu (SHIB) whale has realized staggering profits by capitalizing on early investments in the meme token. The investor spent $3,800 to acquire 15.28 trillion SHIB in August 2020, shortly after its launch, when the token traded at $0.0000000009. Five years later, the whale sold a portion of the holdings for $6.05 million while retaining 2.15 trillion SHIB, now valued at $52 million. Cumulative profits over the years exceed $109 million.

Such windfall gains underscore the volatile nature of cryptocurrency markets, where timing is paramount. Shiba Inu's meteoric rise—surging over 45 million percent in two years—created life-changing returns for early adopters. Whale activity peaked between 2020 and 2022, with large-scale accumulations of trillions of tokens. Recent data shows a sharp decline in these transactions as SHIB's higher price and perceived risk deter massive buying.

Shiba Inu's Path to $0.0001: The Burn Calculus

Shiba Inu (SHIB) remains a focal point for speculative interest as the meme coin struggles to reclaim its October 2021 peak of $0.00008616. The token now trades 86% below that historic level, with the community fixated on breaching the psychological $0.0001 barrier. Achieving this would require either massive supply destruction or substantial market cap expansion.

Current projections suggest 517 trillion SHIB must be burned to hit the target at today's $7.2 billion valuation—a staggering figure that dwarfs Vitalik Buterin's 410 trillion token incineration in 2021. The SHIB development team's rumored new burn mechanism, potentially capable of destroying trillions annually, could accelerate this timeline. Market dynamics suggest supply shocks may outweigh organic demand in driving price discovery for this hyper-inflationary asset.

Shiba Inu Whales Accumulate Amid Price Dip, Signaling Potential Recovery

Shiba Inu (SHIB) has faced sustained selling pressure since breaking below its ascending parallel channel on July 28, with technical indicators pointing to weakened bullish momentum. The meme coin's decline reflects broader market volatility, yet on-chain data reveals a counterintuitive trend: whales are buying the dip.

Nansen analytics show addresses holding over $1 million in SHIB increased their positions by 4% this week. This accumulation pattern mirrors growing retail investor interest, with IntoTheBlock noting a 1% rise in short-term holders extending their positions. Market participants appear to be positioning for SHIB's next potential upswing.

|Square

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