Shiba Inu's Burn Surge Could Tip the Bullish Balance

Shiba Inu (SHIB) has recently drawn attention as its price remains in a narrow trading range, hovering near $0.00001235 while maintaining support levels. This consolidation has intensified expectations of a breakout, particularly as the token’s burn rate has surged dramatically in recent days [1]. The surge in burn activity is believed to have contributed to growing speculative interest, reinforcing narratives of scarcity and potentially influencing market sentiment [1].

Technical analysis highlights a symmetrical triangle pattern, with SHIB testing resistance near $0.00001400 and support near $0.00001100. This pattern often precedes significant volatility, and according to measured breakout targets, a successful break above current levels could drive the price toward $0.00003000, representing a potential 142% increase [1]. The token has demonstrated repetitive attempts to form higher lows, indicating gradual strengthening pressure. Additionally, liquidity clusters suggest that key price levels could trigger bullish activity once the pattern resolves [1].

The burn rate has seen an extraordinary spike, with SHIB’s deflationary mechanism increasing by over 201,207% in a 24-hour period. According to Shibburn, over 4.56 million SHIB tokens were destroyed during this timeframe, signaling growing community engagement as circulating supply is further reduced [2]. While the absolute number of tokens burned is small compared to SHIB’s total supply of approximately 589.25 trillion, the psychological impact of such a surge is significant [2]. Scarcity narratives are further reinforced, as roughly 40% of the token supply has already been sent to the burn address [2].

Analysts have noted that the recent burn activity coincided with heightened technical consolidation, amplifying expectations of a breakout [1]. This surge in token destruction aligns with broader market dynamics, as SHIB remains embedded in large portfolios. For example, Bybit’s audit revealed nearly three trillion SHIB tokens held on its exchange, illustrating the token’s entrenched position in crypto portfolios [1]. Additionally, the accelerating burn rate is seen as a catalyst that could fuel a major upward movement, especially if resistance levels are decisively broken [2].

Despite the bullish indicators, SHIB’s price has struggled to maintain upward momentum, with a 1.69% decline in the last 24 hours. The token has shed 2.84% of its value over the past week, trading at $0.00001222 as of press time [2]. Low trading volume and shifting investor interest toward other meme coins like Pepe and Bonk have also tempered enthusiasm. However, community members remain optimistic about a potential bullish September, citing the deflationary mechanism and broader technical conditions as supportive factors [2].

The current dynamics reflect a tug-of-war between bulls and bears, with market participants closely watching for signals that could tip the balance in favor of a sustained rally. If buyers maintain their pressure and resistance levels are decisively broken, the token’s price could see a swift and substantial rise. On the other hand, a breakdown below key support levels could signal a deeper correction. Given the token’s position within the triangle pattern and the psychological weight of the burn rate surge, the likelihood of an upside breakout appears to outweigh the risks of a further decline at this stage [1].

Source:

[1] Shiba Inu Price Eyes 142% Breakout as Burn Rate Surges 201,207%— Is $0.000030 Next? (https://coingape.com/markets/shiba-inu-price-eyes-142-breakout-as-burn-rate-surges-201207-is-0-000030-next/)

[2] Shiba Inu Breaks Burn Rate Limit With 201,207% Surge— Will Price Follow? (https://u.today/shiba-inu-breaks-burn-rate-limit-with-201207-surge-will-price-follow)