Shiba Inu’s 8,400% Burn Surge Fuels 15% Price Rally

Sean Williams
Shiba Inu (SHIB)

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Shiba Inu (SHIB) is making headlines again as a dramatic 8,400% surge in its burn rate has slashed token supply, fueling a 15% price increase in a single day. An anonymous wallet removed millions of SHIB tokens from circulation, sparking bullish sentiment among investors. The market is responding with enthusiasm, as trading volume has soared by 114%, signaling renewed interest in the popular meme coin. With a market capitalization now standing at $9 billion, SHIB is inching closer to the coveted top 10 cryptocurrencies.

Shiba Inu’s Price Surge and Market Sentiment

SHIB’s recent rally has traders wondering whether history will repeat itself. Open interest in SHIB futures has jumped by 30%, pushing total positions past $166.74 million. More traders are entering the market, betting on further gains. Confidence continues to grow as Shibarium, SHIB’s Layer-2 network, hits record-breaking activity, surpassing 10 million processed blocks. This surge in network usage indicates increasing adoption and utility within the Shiba Inu ecosystem.

Analysts have drawn comparisons between this rally and SHIB’s explosive 2021 surge. The price chart is now forming a cup-and-handle pattern, a bullish indicator often preceding a breakout. The “cup” phase peaked in March 2024 at $0.00004567, and the “handle” is currently shaping up. If this pattern plays out, Shiba Inu could be on the verge of another massive rally.

A shrinking supply further supports the bullish outlook. With fewer tokens in circulation, upward pressure on price increases. Some analysts predict a 200% rally if demand remains strong, potentially pushing SHIB’s market cap to $27 billion. However, traders remain cautious. The Relative Strength Index (RSI) hovers around 64, nearing the overbought zone, signaling a possible short-term correction before further upward movement.

What’s Next for Shiba Inu?

SHIB’s price action suggests heightened volatility. The Bollinger Bands indicate that the price has exceeded the upper band, a sign of strong momentum. If buying pressure continues, another breakout could occur. However, a rejection at key resistance levels may lead to a temporary pullback. The Moving Average Convergence Divergence (MACD) remains bullish, with the MACD line positioned above the signal line, reinforcing positive sentiment.

If SHIB breaks past $0.0000185, further gains could follow. Beyond short-term price movements, speculation is growing about the potential for a Shiba Inu ETF. The project’s marketing lead, Lucie, recently floated the idea, while analyst James Seyffart estimates a 75% chance of approval for a Dogecoin ETF. If regulators begin embracing meme coins, SHIB could be next in line.

Also Read: Shiba Inu Breakout? Rollblock (RBLK) Presale Surges in GameFi Boom

For now, Shiba Inu’s 8,400% burn surge has set the stage for strong momentum. With supply shrinking and demand rising, the market remains bullish. Traders are closely watching key resistance levels, eager for signs of another major breakout.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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