SHIB Death Cross Could Be Coming As 67% of Investors Sit at a Loss

• SHIB technical indicators highlight the formation of a “death cross,” signaling potential for further sell-offs, with a massive 67% holders at a loss.
• Despite bearish price action, SHIB recorded a massive 12,833% increase in its burn rate over the last 24 hours, with 13 million tokens removed from circulation.

As the broader crypto market enters a bearish territory, the Shiba Inu (SHIB) price chart flashes a death cross signal, while slipping into the bearish territory. As the SHIB price drops under the crucial moving averages, bears could dominate further over the bulls.

Shiba Inu Flashes Death Cross Signal

On the hourly chart, SHIB is trading near 0.00001123 USDT, positioned below the 50 EMA, 100 EMA, and 200 EMA—a clear indication of stacked resistance that suggests continued downside pressure.

From a technical perspective, SHIB is on the verge of forming a “death cross,” where the 50 EMA crosses below the 200 EMA. This widely recognized bearish indicator often signals impending sell-offs. Traders should remain cautious, as confirmation of this pattern could spark a new wave of selling, driven by stop-loss triggers and deteriorating market sentiment.

Source: TradingView

Beyond the charts, on-chain and exchange metrics further underscore the bearish outlook for SHIB. Additionally, token summary data reveals that 67% of holders are currently at a loss, raising the risk of panic selling. Over the past week, Shiba Inu’s large transaction volume has totaled $105.5 million but shows a downward trend, reflecting diminishing interest from whale investors, as highlighted in our previous news article.

Key indicators, including net network growth, large transaction participation, and concentration metrics, are all signaling bearish sentiment. The overall sentiment gauge has shifted to “mostly bearish,” with four out of six core indicators reflecting negative trends.

SHIB Burn Rate and Active Addresses Spike

Although the Shiba Inu price chart is flashing a death cross, on-chain metrics provide some sort of optimism to investors. As per the data from Shibburn, there’s a massive 12,833% surge in the SHIB burn rate over the last 24 hours, with over 13 million tokens permanently removed from circulation.

Over the past week, this brings the total burned tokens to 75 million, significantly reducing the circulating supply and presenting a potentially bullish case for Shiba Inu’s price.

Source: Santiment

This burn rate spike aligns with a 27% increase in SHIB’s daily active addresses, which rose from 2,777 to 3,534 within 24 hours, according to Santiment. The heightened network activity and increased burn rate suggest growing trader and user engagement on the Shiba Inu network, potentially setting the stage for a recovery in the token’s price performance.

Additionally, Shibarium’s Total Value Locked (TVL) has seen notable growth, climbing from $1.77 million to $1.96 million at press time. This increase in TVL may be driving the surge in both the burn rate and active address count.