Shiba Inu coin price has pulled back after one of its strongest rallies in recent months, but on-chain data suggests investors are still positioning for another move higher.
The meme coin recently climbed above $0.0000050 before encountering profit-taking, while a wave of token withdrawals from centralized exchanges has drawn fresh attention to its near-term outlook.
Current market data also shows SHIB trading near $0.00000502, with a weekly gain of almost 19%, highlighting that the recent correction has not erased the majority of the rally.
Momentum cools after explosive rally
While the recent rally attracted renewed optimism, several momentum indicators have started to weaken.
Trading activity surged dramatically during the breakout, with daily volume increasing by nearly 12 times compared to previous sessions.
That exceptional spike helped fuel SHIB's rapid advance, but volume has since declined steadily, suggesting that buying enthusiasm has moderated after the initial breakout.
The derivatives market tells a similar story. Open interest in SHIB futures has fallen by roughly 25% after the rally, indicating that leveraged traders have reduced their positions.
Lower open interest generally reflects either profit-taking or liquidation of speculative positions, reducing short-term market leverage.
One of the biggest developments for Shiba Inu has been the movement of more than 1 trillion SHIB from centralized exchanges into private wallets.
Exchange outflows are closely monitored because they reduce the amount of tokens immediately available for sale.
While such movements do not guarantee higher prices, they often point to investors choosing to hold their assets rather than keep them on trading platforms.
At the same time, Shiba Inu’s exchange reserves remain relatively elevated, meaning the recent withdrawals represent an encouraging signal rather than confirmation of a sustained bullish trend.
Another supportive factor has been the acceleration in SHIB token burns.
According to Shibburn, more than 1 trillion SHIB tokens were permanently removed from circulation during the recent rally, marking the largest burn activity in roughly a year.
Notably, the increase in burn activity coincided with the launch of Woofswap DEX v3, whose ecosystem mechanisms contribute additional SHIB burns through platform activity.
Demand has also been supported by increased participation from South Korean traders.
Trading volumes for the SHIB/KRW pair on Upbit, South Korea's largest cryptocurrency exchange, rose significantly during the rally, making the Korean market one of the key contributors to global SHIB trading activity.
Shiba Inu coin price forecast
Shiba Inu price is approaching an important technical area following its recent retracement.
The first level traders will watch is the 100-day Exponential Moving Average (EMA) near $0.0000050.
This level recently shifted from resistance to support after SHIB's breakout. Holding above this area would suggest buyers are still defending the recent advance.
Below that, a sustained move under $0.00000494, which marked the lower end of the recent daily trading range, could increase selling pressure and place additional focus on whether buyers return at lower prices.
On the upside, the next major resistance remains around the 200-day EMA near $0.0000060. A decisive break above that level would place SHIB at its highest price in several months and could strengthen the current recovery trend.
For now, the exchange outflows exceeding 1 trillion SHIB, elevated burn activity, growing ecosystem development through Woofswap DEX v3, and stronger participation from Upbit users continue to provide constructive support.
However, fading trading volume and the roughly 25% decline in futures open interest suggest that momentum has cooled following the initial surge, leaving the next move dependent on whether fresh buying demand returns.
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