Shiba Inu (SHIB) has witnessed a staggering 3829.51% increase in its burn rate over the past week, sparking speculation about a potential supply-driven price rally. At press time, SHIB was trading at $0.00001529, marking a 5.88% gain in the last 24 hours. The meme coin’s market capitalization has surpassed $9.18 billion, reinforcing its dominance in the cryptocurrency space.
Does an Explosive Burn Rate Guarantee Price Gains?
While a high burn rate reduces SHIB’s circulating supply, historical trends indicate that it does not necessarily lead to immediate price gains. According to AMBCrypto analysis, a previous 612% surge in the burn rate had little impact on SHIB’s price due to insufficient market demand. For a meaningful price rally, the burn rate must be complemented by strong buying pressure, positive market sentiment, and increased whale accumulation.
Are SHIB Holders Profiting?
Currently, 40.42% of SHIB holders are “In the Money,” holding their tokens at a profit, while 55.09% remain “Out of the Money,” having purchased at higher prices. This imbalance suggests potential selling pressure as investors might exit when they reach break-even points, capping further price appreciation. However, if SHIB breaks above $0.000016, bullish sentiment could reignite, driving fresh accumulation.

SHIB’s Technical Outlook: Key Resistance Levels
SHIB’s daily chart shows a descending wedge pattern, a bullish indicator often preceding breakouts. The immediate resistance at $0.00001686 is a crucial level to watch. A successful breach could propel SHIB toward $0.00002011, opening the door for a stronger rally. Conversely, a drop below the key support at $0.00001290 might trigger a deeper correction, erasing recent gains.

Despite the recent price uptick, on-chain data reveals an 18.83% drop in new SHIB addresses and a 16.76% decline in active addresses, suggesting weakened retail participation. However, whale activity has surged, with transactions exceeding $100K spiking by 611.69%, indicating growing institutional interest.

While SHIB’s burn rate is impressive, its long-term price trajectory hinges on sustained demand. A breakout above $0.00001686 could signal further gains, but weak buying pressure may result in consolidation or a pullback. For SHIB to maintain its bullish trend, increased volume and retail engagement will be crucial.
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.
Also Read: Shiba Inu Burn Rate Soars 550%, Fueling SHIB Price Surge Amid Crypto Market Recovery