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Shiba Inu’s (SHIB) recent surge in burn rates has ignited the crypto community’s interest, signaling a potential bullish trend.
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This spike of over 3,273% in the burn rate underscores a shift towards increased network activity, suggesting traders are gearing up for significant price movements.
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According to COINOTAG, “Historically, significant burn activities have acted as precursors to major price trends in cryptocurrencies.”
Explore how Shiba Inu’s remarkable burn rate spike is driving new market dynamics and shaping the price outlook for investors and traders.
Shiba Inu’s Increasing Network Usage
On-chain data revealed a notable increase in engagement within the SHIB ecosystem. The active addresses have risen by 5.74% over the past week, indicating a healthy uptick in user participation. This surge suggests that more investors are becoming involved with the network, potentially anticipating further developments in SHIB’s price trajectory.
Moreover, there has been a dramatic increase in zero balance addresses (ZBAs), which rose by 31.11%. This is generally attributed to token transfers, wallet consolidations, or burn activities—all of which reflect internal rebalancing within the ecosystem.
Interestingly, while the growth of new addresses fell by 8.57%, the churn observed indicates increased transaction volume rather than a decline in network interest. These metrics reveal that the SHIB community is actively preparing for a market response, showing resilience rather than retreat.
Source: IntoTheBlock
Price Coils at Resistance: Will Bulls Take Control?
As of the latest data, SHIB’s price is confined within a defined range, oscillating between $0.00001106 and $0.00001290. The cryptocurrency is currently attempting to establish support above the mid-Bollinger Band situated at $0.00001198, with immediate resistance identified near the $0.00001262 level.
A confirmed breakout beyond the $0.00001290 threshold may pave the way for a potential rally towards the $0.00001428 supply zone. Conversely, if this resistance level is not breached, traders might witness further sideways trading. Notably, bulls continue to defend a critical demand zone between $0.00001100 and $0.00001110, indicating sustained buying interest despite low volatility.
Source: TradingView
A Breakout Setup in Motion?
The increase in Open Interest by 7.05%, reaching $125.57 million, underscores a growing interest among traders, hinting at a bullish sentiment. The Long/Short Ratio stands at 1.17, reflecting that 54.06% of market participants hold long positions. This soft bullish sentiment indicates optimism while remaining cautious against overexposure to the market.
The current price tightening often signals upcoming sharp price movements. Therefore, traders appear to be gradually positioning themselves for a potential upward breakout even as they remain wary of the resistance levels ahead.
Source: Coinglass
Will SHIB Extend Its Climb?
The surging token burn activity, coupled with the movement of active wallets and increased market engagement, suggests that a momentum shift may be brewing. However, the SHIB price remains trapped within its current range and must break above $0.00001290 to validate a trend reversal.
Should the bulls succeed in flipping this resistance into support, SHIB could potentially rally towards the next critical level. Until such a breakout occurs, the cryptocurrency remains an essential watch zone, poised for volatility as it seeks confirmation of future movements.
