Shiba Inu 24-Hour Burn Rate Surges 103,222%

Shiba Inu (SHIB) has experienced a significant 103,222% surge in its 24-hour burn rate, resulting in the destruction of over 102 million tokens. This substantial reduction in circulating supply has tightened the overall availability of SHIB tokens, potentially influencing market dynamics.

Despite this aggressive burn rate, the broader market has shown mixed signals, with SHIB's price slipping by over 3% in the past day. However, historical data suggests that such spikes in burn rates often coincide with increased trader interest and reduced sell-side pressure, which could renew bullish sentiment and build speculative momentum.

SHIB continues to trade within a persistent descending channel structure. However, the token recently bounced from a clearly defined demand zone between $0.0000100 and $0.0000120, indicating strong buyer interest. Despite ongoing lower highs, this reaction near the channel bottom shows that bulls are not yet sidelined. Now, SHIB is inching toward the upper boundary of the structure. Therefore, if the price closes above this trendline with volume confirmation, it could signal a potential breakout and reversal of the prolonged downtrend.

SHIB’s total exchange netflow shows a massive outflow of 25.19 billion tokens, reflecting a 144.3% decline in supply held on exchanges. This behavior suggests investors are moving their holdings to self-custody, often a bullish signal associated with accumulation and long-term conviction.

SHIB volatility has dropped to 64.55%, its lowest reading in the past thirty days. This kind of compression typically precedes sharp directional moves as the price coils within a tight range. The last time SHIB saw similar low volatility, it experienced a notable breakout shortly after. While reduced volatility can suggest market indecision, it can also hint at explosive setups. Therefore, this calm phase could offer bulls an entry if price pushes beyond nearby resistance, especially as momentum builds from other on-chain indicators.

The OKX SHIB/USDT liquidation heatmap reveals dense short liquidation zones between $0.0000132 and $0.0000140. These clusters represent high-leverage traders vulnerable to forced exits. Therefore, if SHIB manages to break above this range, it could trigger a cascade of short liquidations, adding fuel to upward momentum. Given the token’s current positioning near resistance and strong fundamentals, this zone becomes critical. A breakout above it would not only trap shorts but also likely attract fresh buyers anticipating the squeeze.

Ultimately, SHIB’s fundamentals have rapidly shifted as aggressive token burns and massive exchange outflows alter supply dynamics. The price remains trapped in a descending channel, but it now tests its upper boundary. Additionally, reduced volatility, strong retail participation, and nearby short liquidation zones build a strong case for a breakout. If bulls maintain control, SHIB could rally beyond $0.0000132 and trigger rapid momentum. However, failure to clear resistance could prolong the sideways trend.