- SHIB’s burn rate spiked by 984% as a bullish pattern targeted a potential 70% price rally
- Exchange outflows rose and short liquidations hiked, but sentiment was still slightly negative
Shiba Inu [SHIB] has seen a remarkable 984% surge in its 24-hour burn rate, marking one of the most aggressive token destruction events in recent weeks. Such a significant spike could point to a sharp uptick in network activity and renewed commitment by the SHIB community to reduce the circulating supply.
Burn mechanisms play a critical role in Shiba Inu’s deflationary strategy. And, such a dramatic increase often reinforces bullish expectations as supply pressure begins to ease. At press time, SHIB was trading at $0.00001229, following a 2.28% daily hike. While this price move may seem modest, the underlying burn dynamics could set the foundation for stronger long-term price performance if sustained.
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 timr 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.