Shiba Inu Burn Rate Surges 12,833% Boosting Price Potential

Shiba Inu (SHIB) has recently shown significant bullish indicators, with its burn rate spiking by 12,833% over the past week. This surge in burn rate, which involves the permanent removal of tokens from circulation, has led to the destruction of 75 million SHIB tokens. This reduction in supply is expected to create upward pressure on the token's price, as the available supply decreases while demand remains constant or increases.

Technical analysis further supports the bullish outlook for SHIB. The token has formed a bull flag pattern on the 4-hour chart, which is typically seen during strong uptrends and suggests that further price increases are likely. The target price for this pattern is approximately $0.0000138, representing an 18% increase from the current price of $0.00001127. Additionally, a double-bottom formation on the daily chart adds to the bullish case, with a neckline at $0.00001765 and a potential target price of around $0.000025 if SHIB breaks above this level.

Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also show bullish divergences, supporting the potential for a price move toward higher resistance zones between $0.000025 and $0.000032. These indicators suggest that the current price action is diverging from the overall trend, which could signal a reversal or continuation of the uptrend.

On-chain activity further strengthens the bullish momentum for SHIB. The number of active addresses has surged by 27%, from 2,777 to 3,534, in the past day. This increase in user activity coincides with a growth in Shibarium’s Total Value Locked (TVL), which climbed from $1.77 million to $1.96 million. The rise in TVL indicates that more value is being locked into the Shibarium ecosystem, which could support further price appreciation for SHIB.

According to an observation by Crypto Catalysts, SHIB has repeatedly rebounded from the $0.0000115 support level since March 2025. As long as SHIB holds above $0.00001025, the bullish setup remains valid and could support a sharp rally. This support level has acted as a floor for the token's price, preventing it from falling further and providing a foundation for potential price increases.

In summary, the recent spike in SHIB's burn rate, combined with bullish chart patterns and growing on-chain activity, suggests that the token may be poised for a breakout toward $0.0001 and beyond. The reduction in supply, coupled with rising demand and technical indicators, adds to the bullish case for SHIB. However, it is important to note that the cryptocurrency market is highly volatile, and price movements can be unpredictable. Investors should conduct their own research and exercise caution when trading SHIB or any other cryptocurrency.