Shiba Inu saw its profitable supply collapse by 62% over the past week, leaving roughly 57 trillion SHIB in the money, as a sharp price correction erased recent gains and flipped market sentiment toward distribution.
Data from on-chain analytics showed the number of profitable SHIB tokens fell from about 140 trillion at the start of the year to roughly 57 trillion (≈57.000.000.000.000). That 62% contraction reflected a rapid shift from an accumulation environment into one where many participants are underwater and likely to consider liquidation or selling to cut losses.
Compounding the profitability collapse were persistent exchange inflows. Exchange net position-change metrics signaled tokens routing back onto centralized venues, a pattern commonly interpreted as preparation for sale rather than long-term custody. Reports also flagged sporadic burn-rate spikes — a cited surge as large as 1.550% — but those events did not offset the broader distribution trend, leaving sentiment broadly bearish.
Technical picture and trader implications
Price action tightened into a narrow band, trading between $0.00000842 and $0.00000857 as sellers probed support. A critical level sits at $0.00000836, which coincides with the 50-day exponential moving average (EMA). The 50-day EMA’s alignment with the support zone gives it added significance for short-to-medium term momentum: a decisive breach would confirm technical deterioration and could open a path toward $0.00000786.
For traders and risk managers, the current setup raises three operational considerations: elevated likelihood of forced selling if holders with leverage cover positions; the potential for increased volatility around exchange-driven liquidity points; and the limited efficacy of isolated burn events while net supply pressure and exchange balances remain elevated.
Investors and traders are now watching whether buyers can defend the 50‑day EMA and the $0.00000836 support; a failure to hold that level would likely accelerate technical selling and shift positioning further toward short or risk-reduction strategies.
The interplay between on-chain profitability, exchange balances and short-term technical levels will determine whether SHIB stabilizes or extends the corrective phase in the coming sessions.
