Shiba Inu's 24-Hour Token Burn Rate Surges 1,361%

Shiba Inu [SHIB] experienced a remarkable 1,361% surge in its 24-hour token burn rate, which has injected renewed energy into the SHIB community. At the time of reporting, the token was trading at $0.00001309, reflecting a 3.95% drop over the last 24 hours. However, price movements are not always the first indicators of underlying trends.

Despite the subdued price, on-chain metrics indicate promising signs of revitalized network activity. Recent address statistics reveal a significant uptick in user engagement. New addresses grew by 22.10% over the past seven days, while active addresses rose by 23.07%. Even zero-balance addresses, often linked to inactive or reset wallets, spiked by 31.41%. This pattern suggests both fresh inflows and renewed activity from dormant users. Historically, such increases have served as precursors to price volatility. However, whether this leads to a sustained rally depends on broader market participation and follow-through from whales and institutional players. For now, the organic user growth presents a strong foundational signal.

On the technical chart, SHIB appears to be completing a bullish cup and handle formation. The neckline resistance stands at $0.00001411. A confirmed breakout above this level could propel the token toward the projected target at $0.00001709. However, there’s a crucial support zone near $0.00001051. Losing this level would invalidate the pattern and potentially open doors to further downside. With the price consolidating near the neckline, the next few sessions will be critical in determining whether SHIB can maintain bullish momentum or face renewed selling pressure.

Exchange reserves declined slightly by 0.12% over the last seven days, suggesting reduced selling pressure. This often signals accumulation by long-term holders. Yet, the 24-hour Netflow plunged by 157.97%, showing that traders recently rushed to deposit SHIB—often a sign of intent to sell. Meanwhile, liquidation data reveal a heavily bullish bias. At press time, long liquidations totaled $499K, compared to just $12K in shorts. This lopsided leverage often signals frothy optimism—where any failed breakout may trigger a swift shakeout.

Despite the 24-hour price dip, SHIB’s spike in burn rate and address activity reflect positive on-chain sentiment. However, exchange and derivatives data expose potential risks tied to over-leveraged optimism. For SHIB to truly reverse its downtrend, it must break $0.00001411 with strong volume and sustained inflows. Until then, cautious optimism—not FOMO—may be the smarter play.