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Shiba Inu’s recent price surge captures market attention as its burn rate skyrockets, indicating a potential bullish trend for the cryptocurrency.
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At the heart of this movement is a 984% increase in SHIB’s burn rate, which suggests robust community engagement and a strategy aimed at enhancing the token’s value.
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According to COINOTAG, “The remarkable burn rate reflects the strength of the SHIB community’s efforts to curtail supply and bolster prices as market dynamics shift.
This article analyses Shiba Inu’s significant price activity fueled by soaring token burns and market trends, projecting a potential 70% price surge.
Is Shiba Inu setting up for a 70% price breakout?
SHIB recently broke out from a long-standing descending trendline and successfully completed a retest, confirming support at that level. This breakout formed a well-defined cup and handle pattern—a bullish structure that typically precedes strong upward moves.
SHIB could rally up to $0.00002096, representing a potential 70% price hike from its press time levels. Additionally, the handle formation highlighted shrinking volatility—a sign that a breakout could occur with strong momentum once price reclaims the $0.00001548-level.
Source: TradingView
Are SHIB whales accumulating as tokens exit exchanges?
Exchange netflow data underlined a sharp drop of 54.5 billion SHIB tokens in the past 24 hours, equating to a -17.1% change. This trend confirmed that holders have been pulling their tokens off exchanges, likely for long-term storage or strategic positioning.
As a result, sell pressure on centralized platforms fell, while supporting the crypto’s bullish price action. Furthermore, these outflows seemed to align with historical accumulation patterns seen before major SHIB rallies. This indicated that smart money could be repositioning ahead of a breakout.
Source: CryptoQuant
Can liquidation clusters boost the bullish momentum?
Gate.io’s 24-hour liquidation heatmap highlighted intense liquidation zones just below the press time price, particularly near $0.00001200. These clusters revealed that many short positions have been wiped out—a sign that bears are being overpowered at these key levels.
Therefore, as SHIB pushes higher, the path of least resistance might be upwards due to the fall in selling pressure. Additionally, the absence of large liquidation walls above press time price levels strengthens the bullish case for further upside.
Source: Coinglass
Why is SHIB sentiment still lagging despite bullish signals?
At the time of writing, Santiment’s weighted sentiment indicator had a mild negative reading of -0.189. This alluded to lingering skepticism among market participants. However, bearish sentiment during bullish structural setups often acts as a contrarian indicator.
Historically, SHIB has seen sharp rallies whenever traders have doubted its strength, and the prevailing setup seems to mirror those conditions. Therefore, this emotional disconnect could fuel more aggressive moves as latecomers attempt to catch the trend.
Source: Santiment
Is a rally towards $0.00002096 on the horizon?
All critical metrics—technical patterns, burn activity, exchange outflows, and liquidation structure—were flashing bullish at press time. However, sentiment remains slightly negative, and this lingering caution could still introduce short-term hesitation among traders.
Therefore, SHIB’s journey towards $0.00002096 may require consistent momentum and confirmation above key resistance levels.
Conclusion
In summary, Shiba Inu’s recent price movements, driven by increased token burn rates and strategic accumulation from holders, position the asset favorably for potential price gains. While market sentiment is presently cautious, the technical indicators suggest that a significant breakout could be on the horizon, particularly if SHIB can maintain upward momentum above critical resistance levels.
