- SHIB burn rate spiked to 103,222%, with over 102 million tokens destroyed in 24 hours.
- Exchange outflows hit 25.19B SHIB, suggesting strong accumulation despite low volatility.
Shiba Inu [SHIB] has recorded a staggering 103,222% spike in its 24-hour burn rate, wiping out over 102 million tokens and tightening the circulating supply.
This sharp deflationary move arrives as the broader market sees mixed signals, with SHIB’s price slipping by over 3% in the past day.
However, such an aggressive burn rate could renew bullish sentiment and build speculative momentum.
Historically, SHIB burn spikes have aligned with periods of increased trader interest and reduced sell-side pressure.
Can SHIB break free from its descending channel?
SHIB continues to trade within a persistent descending channel structure. However, the token recently bounced from a clearly defined demand zone between $0.0000100 and $0.0000120, suggesting the presence of strong buyer interest.
Despite ongoing lower highs, this reaction near the channel bottom shows that bulls are not yet sidelined. Now, SHIB is inching toward the upper boundary of the structure.
Therefore, if the price closes above this trendline with volume confirmation, it could signal a potential breakout and reversal of the prolonged downtrend.
Source: TradingView
SHIB’s total exchange netflow shows a massive -25.19B outflow, reflecting a 144.3% decline in supply held on exchanges, as per CryptoQuant data.
This behavior suggests investors are moving their holdings to self-custody, often a bullish signal associated with accumulation and long-term conviction.
Will SHIB’s lowest volatility in 30 days fuel the next move?
SHIB volatility has dropped to 64.55%, its lowest reading in the past thirty days. This kind of compression typically precedes sharp directional moves as the price coils within a tight range.
The last time SHIB saw similar low volatility, it experienced a notable breakout shortly after. While reduced volatility can suggest market indecision, it can also hint at explosive setups.
Therefore, this calm phase could offer bulls an entry if price pushes beyond nearby resistance, especially as momentum builds from other on-chain indicators.
Source: IntoTheBlock
Will short liquidations above $0.0000132 catalyze a price surge?
The OKX SHIB/USDT liquidation heatmap reveals dense short liquidation zones between $0.0000132 and $0.0000140. These clusters represent high-leverage traders vulnerable to forced exits.
Therefore, if SHIB manages to break above this range, it could trigger a cascade of short liquidations, adding fuel to upward momentum.
Given the token’s current positioning near resistance and strong fundamentals, this zone becomes critical.
A breakout above it would not only trap shorts, but also likely attract fresh buyers anticipating the squeeze.
Source: CoinGlass
Ultimately, SHIB’s fundamentals have rapidly shifted as aggressive token burns, and massive exchange outflows alter supply dynamics.
The price remains trapped in a descending channel, but it now tests its upper boundary.
Additionally, reduced volatility, strong retail participation, and nearby short liquidation zones build a strong case for a breakout.
If bulls maintain control, SHIB could rally beyond $0.0000132 and trigger rapid momentum. However, failure to clear resistance could prolong the sideways trend.
