Shiba Inu stalls at resistance as burn rate, TVL lag

TLDR

• Large supply and modest burns cap upside amid overhead technical resistance.
• Broader meme-coin downturn and investor caution dampen SHIB’s momentum.
• 150.4 billion SHIB inflows boost selling pressure, draining bid-side liquidity.

Shiba Inu’s upside remains constrained by large circulating supply, modest burn mechanics, and overhead technical barriers. As reported by CoinGape, SHIB faces resistance amid a broader meme-coin downturn, with investor caution and a low burn rate limiting momentum.

Exchange flows have also added pressure. Pintu reported that 150.4 billion SHIB entered the market, a scale of inflows that typically reinforces near-term selling and absorbs bid-side liquidity, delaying sustained breakouts.

Why it matters now: sentiment, Shibarium TVL, weak whale demand

Adoption signals are muted. AInvest News reported Shibarium’s Total Value Locked fell below $1 million, indicating limited on-chain demand to counteract supply headwinds and reinforce price resilience.

Large-holder participation appears soft. BanklessTimes noted declines in big-wallet positioning, suggesting subdued whale demand that reduces the likelihood of aggressive dip buying or rapid trend reversals.

There are intermittent signs of stabilization. Bitget reported SHIB prices consolidating near a key monthly support area as selling pressure eased, but such bases usually need stronger demand catalysts before resistance levels meaningfully give way.

“With SHIB’s vast circulating supply … reaching $1 would require an astronomical market cap far beyond what the crypto market could sustain,” said Davinci Jeremie, a Bitcoin analyst, underscoring why structural supply remains a persistent headwind.

At the time of writing, contextual price data remain tight. According to Investing.com, a recent day range printed around $0.00000646 to $0.00000653, illustrating narrow intraday moves even as broader sentiment stays cautious.

Token supply and SHIB burn rate: why impact remains limited

Burns retire tokens, but their scale has been too small relative to SHIB’s massive supply base to materially change circulating float in the near term. When reductions are incremental, they rarely offset sell-side flows or overcome entrenched resistance on their own.

The dynamic is circular: limited utility growth slows organic demand, modest burns struggle to move the needle, and periodic exchange inflows refresh supply overhang. Until on-chain adoption and liquidity deepen, the price impact of current burn activity is likely to remain contained.