- SHIB rebounded from key support, and a bullish breakout is possible above $0.00001718.
- Market sentiment remained mixed, but increasing burn rate and liquidation trends favor bullish momentum.
Shiba Inu’s [SHIB] burn rate has skyrocketed by 580.76% in the last 24 hours, drastically reducing the circulating supply. At press time, SHIB was trading at $0.00001591, reflecting a 1.58% decline in the past day.
However, with such a sharp increase in token burns and strong support levels holding, traders are now eyeing a potential price rebound. Can this surge in burn rate ignite a bullish rally for SHIB?
SHIB price action: Is momentum shifting?
SHIB has rebounded from its key $0.00001290 — $0.00001400 accumulation zone, indicating strong buying interest. The price remains inside a descending wedge pattern, historically signaling a potential bullish breakout.
If SHIB breaks above $0.00001718, it could trigger a rally toward $0.00002011, with further resistance at $0.00002415.
At the time of writing, the Relative Strength Index (RSI) sat at 40.54, suggesting that SHIB was approaching oversold conditions.
A move above 50 could indicate growing bullish momentum. However, failure to sustain support could result in another retest of lower levels, delaying a potential breakout.
Source: TradingView
What does holder sentiment reveal?
On-chain data revealed that 76.85% of SHIB holders are out of money, meaning they are holding at a loss. Only 16.48% of addresses are in profit, while 6.67% are at breakeven.
This imbalance suggests that if SHIB’s price starts climbing, many holders may look to sell at breakeven or minimal profit, creating potential resistance zones.
However, with the burn rate drastically reducing supply, fewer available tokens could increase scarcity, potentially driving prices higher.
If Shiba Inu sustains its momentum, the percentage of profitable holders may rise, reinforcing bullish sentiment.
Source: IntoTheBlock
SHIB total liquidations: Are bears losing control?
Liquidation data shows $80K worth of long positions were liquidated, compared to just $19.73K in shorts.
This indicates that bullish traders remain active. If SHIB breaks key resistance, more short liquidations could fuel a stronger price rally.
However, if the price remains below resistance, selling pressure from trapped holders and short sellers could push Shiba Inu lower. Therefore, a breakout confirmation is crucial for sustained bullish momentum.
Source: Coinglass
Shiba Inu bulls vs. bears: Who has the upper hand?
The market remains in a tug-of-war between bulls and bears, with 126 bulls and 127 bears over the past seven days. This near-equal balance reflects uncertainty, but the recent burn rate surge could tip the scale in favor of buyers.
Additionally, if Shiba Inu maintains support and breaks above $0.00001718, it could trigger a bullish shift. On the other hand, if selling pressure intensifies, bears could regain control, leading to further consolidation or a decline toward $0.00001290.
Source: IntoTheBlock
Can the burn rate boost Shiba Inu’s price?
SHIB’s burn rate surge has significantly reduced circulating supply, creating a bullish catalyst. However, price action must confirm this momentum with a breakout above $0.00001718.
If buying pressure increases, SHIB could rally toward $0.00002011. Otherwise, continued resistance might delay any upward movement.
