The Shiba Inu burn rate skyrocketed by 3,273% – Is the price of SHIB about to enter a breakout cycle?

The token burning rate of Shiba Inu (SHIB) in the past 24 hours has witnessed an impressive spike of up to 3.273%, equivalent to over 28.5 million tokens removed from circulation — a development that has attracted strong attention from the investor community. As of now, SHIB is trading at $0.00001218, up 1.40% from yesterday.

The significant reduction in supply clearly indicates the project's efforts to restore growth momentum after a long accumulation period. At the same time, positive signals from market behavior and on-chain indicators are gradually reinforcing expectations for a sustainable recovery trend.

In the past, strong token burning events often signaled significant price fluctuations — especially when accompanied by a resurgence of individual wallets and an increasingly widespread wave of speculation.

The Shiba Inu network reports growth in usage levels

On-chain data shows that the level of interaction within the Shiba Inu ecosystem is continuously increasing. The number of active addresses has risen by 5.74% over the past week, reflecting the growing interest and participation from the community.

Notably, the number of addresses with a zero balance (Zero Balance Addresses – ZBA) has also surged by 31.11%. This is often a result of token transfers, wallet consolidations, or token burning – actions that indicate the network is undergoing a process of restructuring and internal optimization.

Although the number of new addresses decreased by 8.57%, this does not mean a decline in the ecosystem. On the contrary, the "rotation" of addresses indicates that transaction volumes are still active, with positive cash flow.

Source: IntoTheBlockOverall, these fluctuations indicate that the SHIB ecosystem is not slowing down, but is entering a restructuring phase in preparation for a major price fluctuation – rather than entering a recession as some concerns.

Price is being compressed at the resistance zone: Will the bulls take control?

As of now, the price of SHIB is still stuck in a clear trading range, fluctuating between $0.00001106 and $0.00001290.

Currently, SHIB is trying to consolidate the support zone around the average of the Bollinger Band indicator at $0.00001198, while short-term selling pressure is focused around the resistance level of $0.00001262.

Once the price successfully breaks above the level of $0.00001290, an upward trend may be triggered, pushing SHIB towards the important supply zone at $0.00001428. However, if it fails to surpass this level, it is highly likely that the price will continue to oscillate within the current accumulation zone.

Source: TradingViewHowever, the bulls still maintain an advantage by actively defending the strategic support zone from $0.00001100 to $0.00001110 – a factor that helps uphold the technical structure despite the decline in volatility.

Is a breakout signal forming?

The open contract (OI) has recorded an increase of 7.05%, reaching 125.57 million USD — a clear signal indicating that speculative sentiment is heating up.

The Long/Short ratio is currently at 1.17, with 54.06% of traders holding Long positions. Although the slight skew leans towards the bulls, it reflects a budding optimism rather than an overly exuberant sentiment.

Source: CoinglassCombined with the increasingly narrowing price pattern, this market behavior is often a precursor to strong breakouts. It seems that investors are quietly preparing for a surge, although still remaining cautious before the upcoming short-term resistance levels.

Will SHIB continue its upward trend?

The increase in token burning activities and the noticeable movement in active wallets, along with the strengthening market participation, reveal the potential for silent accumulation beneath the surface – a sign that buying power may be quietly preparing for a breakthrough.

However, the price is still constrained within a narrow range and needs to break through the $0.00001290 level to confirm a clear reversal trend.

If the bulls succeed in turning this resistance area into solid support, SHIB could embark on a journey to conquer new highs. But before that happens, the current price zone remains a significant area to watch – like a tightly compressed spring, ready to snap when the final confirmation signal appears.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their due diligence before making any decisions. We are not responsible for your investment decisions

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