- Shiba Inu’s burn rate skyrocketed 8,925%, sparking a breakout and renewed bullish momentum. However, with whales pulling back,
- the rally may be driven by retail traders and could face volatility ahead.
Shiba Inu (SHIB) is back in the spotlight after its 24-hour burn rate skyrocketed by an astonishing 8,925%, igniting fresh hopes of a price surge. This massive token burn, driven by community efforts, has drastically reduced SHIB’s circulating supply—fueling speculation that the meme coin could soon reclaim the $0.0000153 level.
Historically, such aggressive burn activity has often preceded bullish moves, hinting at a deflationary momentum that could support price appreciation. But is this the start of a sustainable rally—or just another speculative spike?
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On the technical front, SHIB has broken out of a descending channel it respected for weeks, signaling a potential shift in trend. The Alligator Indicator has flipped bullish, while the Directional Movement Index (DMI) now shows DI+ overtaking DI–—both early signs of a trend reversal. However, for this breakout to hold, SHIB must maintain support above the upper trendline.
Meanwhile, Open Interest in SHIB futures has surged 130% to $225.81 million, with the Funding Rate turning positive at 0.0127%. This indicates a rush of leveraged long positions, as traders bet big on further gains. While rising Open Interest can amplify price moves, it also introduces volatility risk, especially if the rally lacks strong spot buying.
Interestingly, SHIB still appears undervalued based on its MVRV Z-score of -2.13, suggesting it’s trading below historical fair value. This could reduce the risk of near-term sell-offs, as most holders sit on unrealized losses.
However, not all signals are bullish. Whale Netflows have plunged 116.67% over the past week, reflecting reduced accumulation or cautious unloading by large holders. This drop raises questions about the rally’s staying power—especially in the absence of institutional or “smart money” support.
In short, SHIB’s breakout, burn rate surge, and rising leverage paint a bullish picture. But unless whale confidence returns, retail traders may be driving a fragile rally. If momentum holds, SHIB could challenge $0.0000153—but it will need broader support to climb higher and stay there.