Shiba Inu (SHIB) Surges 500% as Supply Shrinks 1.05 Billion Tokens

Shiba Inu (SHIB) has maintained its position above the $0.00001311 mark, demonstrating strong momentum as it approaches the $0.000081 breakout target. This upward trend is supported by a significant reduction in supply, with over 1.05 billion SHIB tokens burned in a single week, indicating a surge in demand. The chart structure continues to tighten, reflecting a bullish sentiment among investors.

Shiba Inu's recent breakout mirrors past rallies, with key indicators such as volume, support retests, and trend alignment all pointing towards a strong continuation of the upward movement. The cryptocurrency ended a 448-day compression cycle, breaking past its long-term descending resistance and triggering a breakout above $0.000012. This level later flipped into support after an early rejection near $0.00001796, confirming the strength of the current bullish structure.

Analyst Javon Marks noted that SHIB formed a hidden bullish divergence while retesting the $0.000009 range. This formation is similar to SHIB’s previous bullish reversal structure, which led to a 900% surge. Marks believes the current pattern aligns closely with that historical setup, suggesting a potential for significant gains. He maintains two upside targets: $0.000081 and $0.00017852, representing over 500% of the current zone.

Shiba Inu remains in a tightly coiled accumulation structure just beneath key resistance. The breakout-retest-confirmation sequence remains intact, with the price now sitting above reclaimed zones. This places the market in a technical expansion stage, where the next hurdle is whether volume can sustain through overhead resistance. If this formation pushes SHIB into a broader rally, it could confirm the bullish bias and drive the price higher.

The significant reduction in supply, with weekly burns exceeding 1.05 billion tokens, adds to the bullish sentiment. This level of supply reduction is particularly impactful during structure tightening, as it reduces the overall circulating supply and increases the scarcity of the token. At the time of writing, 4,425,602 SHIB tokens were burned over the last 24 hours, further supporting the bullish outlook.

SHIB is currently trading near $0.00001311 with a market cap of $7.72 billion. Despite a -2.67% 24-hour price change, the structure remains intact, and momentum signals continue to hold. Bulls are closely watching as the next move develops, with demand, chart structure, and burn mechanics all working together. The next move could be decisive, potentially driving SHIB into a broader rally or stalling beneath key levels.