SHIB Burns Explode Again With 38,043% Surge, What's Next For Price

Shiba Inu’s burn rate has surged by 38,043%, reducing the total supply to 589,245,806,058,242 tokens out of an initial 1 quadrillion SHIB according to TradingView. The increased burn activity aligns with a 0.25% price increase in the last 24 hours, with SHIB currently trading at $0.000008642. Analysts project a potential price target of $0.000025 for SHIB by Q2 2026, driven by its deflationary tokenomics and ecosystem growth as research shows.

Shiba Inu has returned to pre-holiday price levels, stabilizing at $0.00000860 after a period of volatility according to Bitget. This price movement reflects reduced short-term liquidity pressures and a return to more organic market behavior. Whale activity remains a key influencer, with large wallet holders historically driving price fluctuations.

The market is mixed, with SHIB showing signs of reduced selling pressure and increased exchange outflows. This trend suggests holders are moving tokens off exchanges and into long-term wallets. However, SHIB remains in a wider downtrend, with long-term moving averages still sloping downward. A sustained price recovery would require continued outflows and increased demand.

What Drives SHIB’s Burn Rate Surge?

The recent 38,043% surge in SHIB burns indicates strong network activity designed to reduce token supply and increase scarcity according to TradingView. In the last 24 hours, 7,247,330 SHIB tokens were burned. This deflationary mechanism aligns with broader ecosystem developments, including the growth of Shibarium, a Layer-2 solution that has processed over 1.5 billion transactions as research shows. The burn rate’s increase is a continuation of a trend that saw over 300% growth in 2025 according to analysis.

Despite these positive signs, SHIB’s Total Value Locked (TVL) remains low at $1 million, indicating challenges in attracting institutional or large-scale liquidity according to investment research. Nonetheless, the project’s tokenomics and ecosystem growth position it as a potential high-potential altcoin in 2026 as analysts project.

What Do Technical Indicators Say About SHIB’s Price Outlook?

Technical indicators like RSI and MACD are showing bullish momentum for SHIB, with the RSI at 64.97 and MACD histogram positive according to MEXC. These signals suggest upward momentum and potential for a price increase. SHIB has also broken out of a falling channel pattern, trading above the 50-day EMA as market analysis indicates. The RSI is near the overbought zone, and the MACD has crossed above the zero line, indicating strong buying pressure.

However, investors should remain cautious. SHIB remains below the 200-day EMA at $0.00001056, and a drop below the 50-day EMA at $0.00000821 could invalidate the recent rally according to technical analysis. The Fear & Greed Index remains at 28, indicating market fear rather than the greed seen in previous SHIB rallies according to Crypto News.

What Role Do Whale Activities Play in SHIB’s Market Dynamics?

Whale activity has seen a 111% surge in SHIB transactions, indicating renewed institutional interest in the token according to Crypto News. This increase suggests that large investors are positioning for the 2026 trading cycle. Institutional investors typically favor assets with substantial market capitalizations to mitigate exit risks during liquidation as investment analysis shows. SHIB’s multi-billion-dollar market cap allows large orders to be executed with minimal slippage, making it an attractive asset for institutional players.

However, whale activity is a double-edged sword. While a 111% increase in large SHIB transactions suggests accumulation, exchange inflows of over 82 trillion tokens signal potential selling pressure according to research. Whale outflows may indicate distribution rather than accumulation, especially given the current rally lacks strong volume support according to market analysis. The concentration of SHIB supply in top wallets, with one address holding 41% of the supply, means price movements are highly sensitive to whale trades as data shows.

SHIB’s market dynamics reflect a balance between bullish technical indicators, deflationary tokenomics, and mixed whale and exchange activity. While the ecosystem shows signs of growth, the token remains in a fragile structure with potential for volatility and failed breakouts according to market reports. Investors should monitor key levels and volume patterns to assess whether SHIB can sustain its current momentum or face further declines.