- Shiba Inu’s burn rate surged by 4,833%, signaling a bullish shift as whale accumulation rises and market volatility declines.
- With growing technical and on-chain indicators, SHIB may be poised for a breakout towards higher price levels.
Shiba Inu (SHIB) has recently experienced an explosive surge in its 24-hour burn rate, skyrocketing by a staggering 4,833.89%. This surge, a sign of growing community activity and efforts to reduce the token’s circulating supply, has fueled speculation about SHIB’s price potential. Historically, such spikes in burn rates often correlate with bullish movements, and many are now wondering if SHIB’s price will follow suit.
Whale Accumulation and Market Stability
The surge in SHIB’s burn rate is not the only bullish indicator. Whale accumulation has also intensified significantly, with net inflows from large holders soaring by over 6,050% in the last seven days. Additionally, monthly whale netflows have risen by 3,077%, signaling growing confidence from long-term investors. These inflows, combined with reduced market volatility, suggest that SHIB could be gearing up for a breakout.
The current volatility of SHIB has dropped to 69.20%, its lowest in the past 30 days, signaling a period of stabilization. When volatility declines during a consolidation phase, it often precedes a major price movement. This calmness could be the calm before the storm for SHIB’s next price surge.
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Positive Technical Indicators
The derivatives market also paints a promising picture. SHIB’s trading volume has increased by 27.30%, reaching $122.26 million, while open interest surged by 11.84%, now totaling $174.12 million. These indicators reflect growing market participation and speculative interest, often signaling higher volatility and the potential for significant price shifts.
Moreover, SHIB’s exchange reserves have decreased by 6.57%, and net outflows have surged by over 1,558%, indicating that large holders are moving their tokens off exchanges into cold storage. This reduces selling pressure and further supports the notion of growing long-term conviction among investors.
The Case for a Bullish Breakout
One of the most interesting developments is the potential for a short squeeze. As SHIB’s price climbed past key resistance levels, a significant number of short positions were liquidated, adding upward pressure. This phenomenon is often a precursor to further bullish movement as traders are forced to buy back into the market.
Shibainu recently broke out of a descending wedge pattern and retested a critical support zone around $0.00001271. It has since been consolidating within a range between $0.00001271 and $0.00001600, forming a bullish rectangle. This consolidation pattern could act as a launchpad for the next price rally.
Is SHIB Ready for Its Next Big Move?
With increasing whale activity, declining volatility, and short liquidations fueling upward momentum, SHIB appears to be in a strong position for a breakout. If SHIB can break above the $0.00001600 resistance level with strong volume, the next target could be the $0.00002400 zone. Given the current market conditions, SHIB may be on the verge of igniting the next leg of its rally.