Shiba Inu between Opportunities and Risks: Experts Warn of Ongoing Challenges

NotSatoshi · 2026-02-05T04:02:40+00:00

Shiba Inu is at a critical market phase, entering a significant annual demand zone, but faces challenges limiting its growth potential. Despite positive signals from token burnings and increased accumulation by investors, decreased ecosystem usage raises concerns about sustainability. Caution is advised for investors.

NotSatoshi

2026-02-05 04:02:40

Abstract generation in progress

Shiba Inu is currently in a critical market phase. The token has entered its annual demand zone, a historically significant price range that was already associated with an impressive 296 percent increase in value in 2024. Despite this bullish outlook, market observers see various challenges that could limit the upward potential.

Positive Signals from Token Burns and Holder Accumulation

The recent developments around Shiba Inu are characterized by intense token burning activities. According to data from NS3.AI, over 28 million SHIB tokens were removed from circulation in a single transaction, increasing the scarcity of supply. At the same time, large investors are accumulating their holdings. On a technical level, bullish patterns are emerging that could indicate price gains. These factors initially suggest a positive market dynamic.

The Dark Side: Decline in Ecosystem Usage

However, behind this superficially positive balance sheet are concerning metrics. Activity within the Shiba Inu ecosystem is declining, which serves as a warning sign for the project’s fundamental strength. Experts see this as an indication that mere token scarcity may not be enough to secure sustainable price gains.

Cautious Tone at Critical Resistance Levels

Given these mixed signals, it remains unclear whether Shiba Inu can break through significant resistance levels. The discrepancy between technical indicators and actual usage trends raises questions about sustainable upward performance. For investors, this means: caution is advised when it comes to Shiba Inu – despite the currently favorable demand zone.

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