Shiba Inu Surges 8925.23% in 24-Hour Burn Rate, Retail Traders Drive Rally

Shiba Inu (SHIB) has recently experienced a significant surge in its value, driven primarily by retail traders. This rally has been marked by a notable increase in the 24-hour burn rate, which soared by 8925.23%. This aggressive burn activity is indicative of the SHIB community's efforts to reduce the circulating supply, potentially creating a deflationary push that could support price appreciation.

Historically, such aggressive burn activity has often preceded upward price movements, signaling growing engagement and support for SHIB's price recovery. On the 4-hour chart, SHIB has broken out of a descending channel pattern, moving above the upper trendline to $0.0000153. This breakout suggests renewed bullish pressure, reinforced by the Alligator Indicator flipping green as the moving averages diverged upward. However, SHIB must hold this breakout to avoid slipping back into consolidation.

Speculative appetite has also surged, with Open Interest increasing by 130.24% to $225.81 million. This indicates that traders are significantly positioning for a price move. Additionally, SHIB’s Funding Rate flipped positive at 0.0127%, reflecting increasing confidence among long traders willing to pay a premium to maintain their positions. However, rising Open Interest can also increase the risk of volatility, especially if long positions become overcrowded without strong spot support.

Despite these bullish signals, there are concerns about the sustainability of the rally. Large Holder Netflow dropped by 116.67% over seven days, indicating that whales are reducing their inflows or offloading positions. This downturn suggests caution among large holders as they evaluate the current rally’s strength. Historically, whale accumulation has aligned with strong uptrends, and the current reduction in activity introduces a layer of uncertainty.

According to Santiment data, SHIB’s MVRV Z-Score remained deep in negative territory at -2.13. This suggests that the asset is still trading below its fair value when compared to historical averages. A low Z-score often implies that holders are sitting on unrealized losses, reducing the incentive to sell. As a result, there might be less profit-taking pressure even if prices rise in the short term, allowing SHIB room to grow without facing immediate overhead resistance from holders exiting at breakeven.

In summary, Shiba Inu is at a pivotal moment characterized by increased retail interest and leveraged trading. However, the waning involvement from whale investors presents potential headwinds. Moving forward, closely monitoring these dynamics will be essential for understanding SHIB’s trajectory. If retail momentum continues and technical indicators remain aligned, SHIB could extend its rally. Nevertheless, without renewed whale support, sustaining higher price levels may prove challenging.