Shiba Inu has experienced a significant price decline recently, marked by shrinking burn rates and a high volume of large transactions suggesting sustained bearish momentum. However, diminished exchange reserves and the cryptocurrency's RSI approaching oversold levels indicate a potential rebound could be forthcoming.

Despite recent favorable performance in the broader cryptocurrency market, Shiba Inu has struggled, with its price falling over 15% in the last two weeks. As of now, it stands at approximately $0.00002575, recording a 6% drop on daily charts, as per CoinGecko's data. These challenges are underpinned by a general downtrend in the meme coin sector, with a 4% decline in market capitalization affecting major meme coins like Dogecoin, Pepe, and others.

The decline in Shiba Inu's burn rate is also noteworthy. The rate dropped nearly 70% in the past week, with only 128 million tokens being sent to a null address. This mechanism aims to reduce the massive supply of SHIB in hopes of increasing its value. To date, over 410 trillion tokens have been burned; however, the current circulating supply remains at around 589 trillion SHIB. Another bearish indicator is the decrease in large transaction volumes, down 4.2% according to IntoTheBlock, further hinting at negative momentum.

Conversely, some metrics point to a possible upturn for Shiba Inu. One such metric is its exchange reserve, which, according to CryptoQuant, has dropped to levels unseen since early 2021. This trend suggests a shift towards self-custody, potentially reducing immediate selling pressure and offering a bullish signal.

Additionally, Shiba Inu's Relative Strength Index (RSI) provides some hope. This technical analysis tool helps identify potential buying opportunities, with its current trend slightly above the bullish threshold after a downtrend over the past week. This implies that SHIB might soon recover if buying conditions improve.

While Shiba Inu faces headwinds with declining prices and market struggles, certain indicators provide a glimmer of optimism for a potential rebound. The outcome remains uncertain, but traders might find opportunities as market dynamics shift.