Shiba Inu 24-Hour Burn Rate Surges 8,925.23% Amid Bullish Market Sentiment

Shiba Inu (SHIB) has sparked renewed market interest following an unprecedented surge in its 24-hour burn rate, which skyrocketed by 8,925.23%. This dramatic increase reflects the community's intensified efforts to reduce the circulating supply, potentially creating a deflationary push. Historically, such aggressive burn activity has often preceded upward price movements, although it does not guarantee a rally. The surge in the burn rate signals growing engagement and support for price appreciation as SHIB aims for a sustained recovery phase.

On the 4-hour chart, SHIB has broken out of a descending channel pattern, a structure it respected for several weeks. This move above the upper trendline places SHIB at $0.0000153 and signals renewed bullish pressure. The Alligator Indicator flipped green as the moving averages diverged upward, while the DMI Indicator showed the DI+ line overtaking DI–. These indicators reinforce early signs of trend reversal. However, SHIB must hold this breakout to avoid slipping back into consolidation.

Speculative appetite for SHIB has exploded, with Open Interest surging 130.24% to $225.81 million as traders flooded into long positions. This sharp rise in open positions indicates that traders are positioning heavily for a price move. Simultaneously, SHIB’s Funding Rate flipped positive at 0.0127%, reflecting growing confidence among long traders. This shift shows that bulls are willing to pay a premium to maintain their positions. However, rising Open Interest can also increase the risk of volatility, especially if long positions become overcrowded without strong spot support.

According to Santiment data, SHIB’s MVRV Z-Score remained deep in negative territory at -2.13. This suggests that the asset is still trading below its fair value when compared to historical averages. A low Z-score often means holders are sitting on unrealized losses, which reduces the incentive to sell. As a result, there could be less profit-taking pressure even if prices rise in the short term. Therefore, SHIB appears to have room to grow without facing immediate overhead resistance from holders exiting at breakeven.

One red flag is the behavior of large holders. Large Holder Netflow dropped 116.67% in the past 7 days, indicating whales are reducing their inflows or offloading positions. This sharp downturn could reflect caution as smart money evaluates whether the current rally has enough strength to sustain itself. Historically, whale accumulation aligns with strong uptrends. The drop in large holder activity introduces a layer of uncertainty. If retail momentum continues and technicals remain aligned, SHIB could extend its rally. However, without renewed whale support, sustaining higher price levels may prove challenging.