Despite a Record Burn Spike and Strong Sentiment, Shiba Inu's Price is Struggling

From May 8 to 11, Shiba Inu, the first major dog-themed memecoin launched on Ethereum began another price rally due to a variety of catalysts.

Shiba Inu price is struggling to gain momentum despite a record burn spike and strong sentiment, while technical indicators and on-chain data are showing signs of weakness and potential downside pressure.

Shiba Inu price is attempting to hold above its 20-day EMA at $0.00001450, but the technical structure remains bearish as SHIB continues to face rejection at the 50-day EMA and the 38.2% Fibonacci retracement level at $0.00001589.

A sustained break above this level is needed to shift the broader trend and generate strong interest from buyers. Otherwise, SHIB may return to the critical support at $0.00001375, which is the 23.6% Fib and the lower boundary of the recent trading range.

Further declines may extend towards $0.00001200, with the April low at $0.00001029 acting as the final major support.

On-chain data from Santiment reveals that large holder netflow dropped -311% in 30D, and whale outflows surged over 1000%, signaling reduced exposure from big traders and potential selling pressure.

This aligns with the observations of Shibburn, which noted an incredible 106,040% spike in their 24-hour burn rate at May 17, while SHIB fell -5.3% on the same day, confirming the bearish setup as it produced a lower high.

Moreover, only 17% of SHIB holders are currently in profit, while over 80% are holding at a loss, which could lead to profit-taking and a halt in any rally.

Active Addresses have also dropped from 238K in December to 75K now, showing disinterest from retail traders.

SHIB futures Open Interest has declined from $542M in January to much lower levels, showcasing decreased leveraged positions amid unclear price momentum.

Overall, the technical outlook remains bearish until SHIB reclaims and trades persistently above the $0.00001450-$0.00001600 zone with high volume. A decisive trend shift may not occur before early June unless fueled by extremely strong catalysts or events.