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Key Takeaways:
- SHIB burn rate surged 2,200%, hinting at bullish supply dynamics.
- A cup-and-handle formation supports a potential 70% breakout.
- Ethereum ecosystem buzz could further fuel SHIB’s rally.
As Shiba Inu (SHIB) celebrates its fifth anniversary, technical and on-chain signals point to a potential bullish breakout. With the meme coin trading near $0.00001204, analysts are eyeing a 70% upside move backed by a sharp spike in burn rate and a textbook bullish chart pattern.
SHIB turns 5 tomorrow.
— Shib (@Shibtoken) July 31, 2025
Still dreaming big.
Thanks for being on this wild ride with us, ShibArmy. ❤️#SHIBturns5 pic.twitter.com/I5OvlA7LFm
Burn Rate Explodes 2,200%
In the last 24 hours alone, Shiba Inu’s burn rate surged over 2,200%, with more than 3 million SHIB tokens permanently removed from circulation. This brings the cumulative burn to a staggering 410.75 trillion tokens, according to Shibburn data. Historically, sharp increases in SHIB burn have preceded price gains due to reduced supply pressure — a dynamic now playing out again amid broader anticipation.
Bullish Technical Setup Strengthens
SHIB’s daily chart now showcases a classic cup-and-handle formation, a bullish continuation pattern. While prices were initially rejected near $0.0000175, the current handle has formed as a falling wedge — another bullish signal. The wedge is compressing close to a support zone around $0.0000100, increasing the probability of an upside breakout.
Technical indicators are aligning: the MACD is nearing a bullish crossover, RSI is cooling at 36.73, and the Balance of Power (BoP) suggests diminishing seller strength. A decisive move above the resistance zone of $0.0000131–$0.0000140 could open doors to $0.0000175 and possibly $0.0000200. A full breakout could see SHIB touch $0.0000220 — a 70% rally from current levels.
Also Read: Shiba Inu Price Reversal Could Trigger $52M Short Squeeze as Resistance Nears
Ethereum Ecosystem Catalysts
Market sentiment around the Ethereum ecosystem may also lift SHIB. Analyst Crypto Patel recently spotlighted SHIB as one of the top Ethereum-based tokens likely to lead the next crypto rally, alongside projects like PENDLE and PYTH. Given Shiba Inu’s integration with Ethereum and its massive community, this broader ecosystem narrative could add further momentum.
As SHIB turns five, the combination of explosive token burns, favorable technicals, and Ethereum-linked optimism could position the meme coin for a significant breakout. However, a clear breach of immediate resistance remains the critical trigger.
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
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
