Shiba Inu had a strong burst of optimism at the end of July, but the mood has changed. The SHIB price is currently being traded at around $0.00000459, and one of the main reasons why traders are interested in SHIB is because of its sudden fall in burn activities.
According to TheCryptoBasic, only 7.10 million SHIB were burned in the last 24 hours with the current value of the coin around $33. This is a massive fall compared to July 26 and July 27 when there were more than 1 billion SHIB burned per day. July still ended with over 3.2 billion SHIB removed from circulation, the strongest monthly burn total in several months, but August has started much more slowly.
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Catalysts That Are Affecting the SHIB Price
The slowdown of burns is not the only aspect to be considered. The Shibarium Layer-2 protocol for the Shiba Inu eco-system is intended to increase utility through Shibarium. There are plans for a privacy improvement utilizing Fully Homomorphic Encryption technology from Zama in 2026, and there were mentions of AI-based projects as well.
CryptoBasic added that these projects matter because they could bring more activity to the network if they are delivered successfully. The market, however, still wants proof that these upgrades can attract users and developers in meaningful numbers.
#ShibaInu’s burn activity has reversed sharply this week after recording one of its strongest performances in months.
— TheCryptoBasic (@thecryptobasic) August 7, 2026
Over the past 24 hours, Shiba Inu witnessed the incineration of just 7.10 million $SHIB worth approximately $33 at current prices. This dramatic slowdown follows…
Regulation has been a brighter spot for SHIB. ShibMortal shared that the token was designated as a digital asset by the SEC, and Japan listed SHIB on its Green List together with Bitcoin and Ethereum. These developments provide an increase in legitimacy and facilitate institutional involvement, despite the lack of a positive sentiment for meme coins.
ShibaInu $SHIB Will Be The Top Token for the next bull run and can overrun DOGE
— SHIBMortal (@SHIBMortal) August 7, 2026
Shiba Inu project is growing fast as an entity.
Its value will likely grow as these initiatives are carried through with it’s USE CASES:
✅ SHIBASWAP
✅ SHIBARIUM LAYER 2
✅ METAVERSE
✅… pic.twitter.com/JSNeoH9fMK
On-chain data is mixed. Reports indicate that whales withdrew roughly 174.8 billion SHIB from exchanges in July, which reduces immediate sell pressure. At the same time, the burn rate has cooled sharply, so the deflationary effect is not as strong as many holders expected.
What the SHIB Chart Is Showing
We considered the chart for SHIB, and from the latest move, we can deduce that the price movement looks like an attempted breakout. SHIB went up to $0.00000600 in late July, where there was a surge in trading volume, but the bulls failed to hold the price above that mark.
It is now trading down to about $0.00000459, and the volume of trading activity has declined significantly from that attempted breakout. Additionally, there is no clear indication from momentum indicators.
The RSI reading is near 48.4, which is neutral, but the Ultimate Oscillator has gone down to 36.8, indicating weaker short-term momentum. The key level to watch is the area around $0.00000440-$0.00000460. That is where buyers are trying to establish support.
Read Also: 3 Reasons It Could Be All Over for Shiba Inu Holders as SHIB Price Crashes 90%
Where the SHIB Price Could Go Next
If there is any recovery of 0.00000500 of SHIB with higher volume, then the traders may look to go for a new shot at 0.00000600. Above that level will be the initial indication that the bulls have regained control.
Support breakdown at 0.00000440 may see the next target around 0.00000300, which was the June low. For now, the SHIB price is in a waiting phase. Whale accumulation and ecosystem upgrades offer longer-term support, but the sharp slowdown in burns and weak trading activity mean traders are still looking for a stronger signal before calling this a sustained recovery.
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