SHIB's Bull Run Tests Structural Weakness as Burns Fuel Volatility

Shiba Inu (SHIB) has seen renewed bullish momentum, with its price surging to $0.00001034 as of press time, driven by market cap recovery and community-led token burn initiatives, as reported by CryptoFront News. Technical indicators suggest a breakout on weekly charts, with prices surpassing key Fibonacci levels, including the 1.272 extension at $0.000185406. Short-term momentum remains positive, as the token trades above the 9-period EMA at $0.00001020, with the Stochastic RSI signaling potential continuation toward $0.0000110–$0.0000115. However, analysts caution, according to a Benzinga report, that overbought conditions may trigger a temporary pullback before further gains.

The token's recent performance has been bolstered by decentralized burn efforts, where community-driven initiatives purchase SHIB from the market and send it to a burn address. These efforts align with SHIB's decentralized ethos, as no single entity controls the burn process. Despite this, structural challenges persist. Shibarium, SHIB's layer-2 solution, has struggled to gain traction, with its Total Value Locked (TVL) consistently below $1 million since early October, according to a Yahoo Finance report. This low TVL highlights a critical utility deficit, as developers and users have not adopted the platform at scale, undermining SHIB's long-term deflationary goals.

Market sentiment is divided. While bulls argue that sustained buying pressure could push SHIB toward $0.0000110–$0.0000115, bears warn of a potential 25% crash if support levels fail. The token remains trapped in a narrowing symmetrical triangle on shorter-term charts, with resistance below the 50-EMA at $0.00001026 and descending trendlines from October highs. A break below the 0.382 Fibonacci level at $0.00001022 could expose deeper support at $0.00000956.

Structural issues complicate SHIB's price recovery. The token's massive circulating supply—approximately 589 trillion—creates a supply overhang that deflationary mechanisms struggle to counterbalance. Analysts argue that SHIB's ecosystem lacks the utility to justify ambitious price targets like $0.0001, calling it a "dead end road." Meanwhile, capital is shifting toward utility-driven sectors like AI compute and DePIN projects, which offer tangible value propositions.

Community resilience offers a glimmer of hope. Recent data showed a 42,000% surge in SHIB burns over 24 hours, temporarily lifting the price to $0.00001062. However, this spike underscores the token's volatility and reliance on short-term hype rather than sustainable adoption. For SHIB to break free from its structural constraints, developers must demonstrate measurable utility on Shibarium, attracting liquidity and developer engagement.

As the market awaits clarity, SHIB's path forward hinges on balancing community-driven optimism with technical and structural realities. A sustained breakout above $0.0000110 would test investor confidence, while a failure to maintain momentum could see the token retest critical support levels.