Shiba Inu's 24-Hour Burn Rate Surges 984% Amid Bullish Trends

Shiba Inu [SHIB] has experienced a significant surge in its 24-hour burn rate, increasing by 984%. This dramatic spike in token destruction is one of the most aggressive events in recent weeks, indicating heightened network activity and a renewed commitment from the SHIB community to reduce the circulating supply. Burn mechanisms are crucial to Shiba Inu’s deflationary strategy, and such a substantial increase often bolsters bullish expectations as supply pressure begins to ease. At the time of reporting, SHIB was trading at $0.00001229, following a 2.28% daily increase. While this price movement may seem modest, the underlying burn dynamics could set the stage for stronger long-term price performance if sustained.

SHIB recently broke out from a long-standing descending trendline and successfully completed a retest, confirming support at that level. This breakout formed a well-defined cup and handle pattern, a bullish structure that typically precedes strong upward moves. According to the analyst's forecast, SHIB could rally up to $0.00002096, representing a potential 70% price hike from its current levels. Additionally, the handle formation highlighted shrinking volatility, a sign that a breakout could occur with strong momentum once the price reclaims the $0.00001548 level.

Exchange netflow data revealed a sharp drop of 54.5 billion SHIB tokens in the past 24 hours, equating to a -17.1% change. This trend confirmed that holders have been pulling their tokens off exchanges, likely for long-term storage or strategic positioning. As a result, sell pressure on centralized platforms fell, supporting the crypto’s bullish price action. Furthermore, these outflows seemed to align with historical accumulation patterns seen before major SHIB rallies, indicating that smart money could be repositioning ahead of a breakout.

Gate.io’s 24-hour liquidation heatmap highlighted intense liquidation zones just below the current price, particularly near $0.00001200. These clusters revealed that many short positions have been wiped out, a sign that bears are being overpowered at these key levels. Therefore, as SHIB pushes higher, the path of least resistance might be upwards due to the fall in selling pressure. Additionally, the absence of large liquidation walls above the current price levels strengthens the bullish case for further upside.

At the time of writing, the weighted sentiment indicator had a mild negative reading of -0.189, alluding to lingering skepticism among market participants. However, bearish sentiment during bullish structural setups often acts as a contrarian indicator. Historically, SHIB has seen sharp rallies whenever traders have doubted its strength, and the prevailing setup seems to mirror those conditions. Therefore, this emotional disconnect could fuel more aggressive moves as latecomers attempt to catch the trend.

All critical metrics—technical patterns, burn activity, exchange outflows, and liquidation structure—were flashing bullish at the time of reporting. However, sentiment remains slightly negative, and this lingering caution could still introduce short-term hesitation among traders. Therefore, SHIB’s journey towards $0.00002096 may require consistent momentum and confirmation above key resistance levels.