Shiba Inu’s 1,361% Burn Surge – A Game-Changer or Just a Temporary Spike?

Shiba Inu’s 1,361% Burn Rate Surge Sparks Fresh Momentum — But Is SHIB Rally-Ready or Overstretched?

On-Chain Metrics Show Shiba Inu Burn Rate Spike and Growing User Activity

The Shiba Inu burn rate surge continues to make waves across the crypto market. Shiba Inu [SHIB] recorded a staggering 1,361% increase in its 24-hour token burn rate, a move that has reignited optimism among SHIB holders and sparked renewed speculation about a potential trend reversal. As token burning reduces circulating supply, this type of spike is often seen as a bullish, community-driven catalyst.

At the time of writing, SHIB was trading at $0.00001309, reflecting a 3.95% decline over the past 24 hours. However, it’s not uncommon for price to lag behind major on-chain movements, especially during the early stages of momentum shifts.

Source: IntoTheBlock

Shiba Inu Network Growth Suggests Bullish On-Chain Setup

While SHIB’s price remains under pressure, underlying on-chain fundamentals are showing signs of strength. Key indicators from the past seven days include:

• New wallet addresses surged by 22.10%
• Active addresses increased by 23.07%
• Zero-balance addresses, often linked to dormant or recycled wallets, rose by 31.41%

These trends point to organic user growth and suggest both new capital inflows and re-engagement from long-time holders. Historically, such activity has often preceded price volatility or upward breakouts.

The Shiba Inu burn rate spike, when combined with growing network activity, paints a promising picture—but broader participation from whales and institutional investors will be key to sustaining any rally.

Source: Tradingview

SHIB Cup and Handle Pattern: Can Shiba Inu Price Break Key Resistance?

From a technical standpoint, SHIB is forming a classic cup and handle pattern—a historically bullish formation:

• Neckline resistance is at $0.00001411
• A confirmed breakout could send SHIB toward a target of $0.00001709

However, SHIB must hold above critical support at $0.00001051. A breakdown below this level would invalidate the pattern and could usher in further downside pressure.

As the token consolidates near resistance, technical traders are watching closely for signs of a breakout fueled by volume and positive sentiment.

Exchange Metrics and Liquidations Cloud SHIB Breakout Potential

While the Shiba Inu burn rate surge and on-chain growth suggest growing momentum, exchange and derivatives metrics present mixed signals:

• Exchange reserves dropped 0.12%, signaling reduced sell-side pressure
• 24-hour Netflow plunged 157.97%, suggesting SHIB was moved to exchanges, possibly for selling
• Long liquidations totaled $499K, while shorts were only $12K — showing bullish overconfidence

Such a lopsided derivatives market setup can result in a rapid correction if the SHIB breakout attempt fails.

Shiba Inu Burn Rate and SHIB Momentum: What Comes Next?

The recent Shiba Inu burn rate spike, paired with increasing wallet activity, suggests renewed community-driven strength. But the over-leveraged long positions and sudden exchange inflows signal the need for caution.

For SHIB to confirm a bullish reversal, it must:

• Break and hold above $0.00001411
• Do so with strong volume and consistent capital inflows

Until then, cautious optimism—not FOMO—should guide strategy, especially in a market prone to sentiment swings.