Shiba Inu Burn Rate Skyrockets 3401%: Price Breakout Imminent?
Shiba Inu Burn Rate Surges, Fueling Price Breakout Speculation
In the last 24 hours, Shiba Inu (SHIB) has burned over 6.3 million tokens, marking an extraordinary 3401% increase in its burn rate. This aggressive burning strategy aims to reduce the token supply, potentially driving up its value.
Open Interest Rises to $295 Million
The spike in token burns coincides with increased bullish sentiment. This level of burning reflects a strong community commitment to long-term valuation, setting a solid foundation for SHIB's market performance.
According to Coinglass, Shiba Inu's open interest has jumped by over 20% to $295 million, mirroring the burn rate increase. This indicates growing speculative interest and the accumulation of leveraged long positions. A rise in open interest typically signals bullish confidence among traders.
This momentum could attract new capital into SHIB derivatives. The combination of high open interest and positive fundamentals, such as the burn spike, strengthens the bullish narrative, suggesting traders anticipate further price gains rather than a reversal.
On-Chain Growth Indicates Healthy Recovery
On-chain metrics from IntoTheBlock confirm rising user engagement. Over the past week:
- New addresses increased by 24.78%
- Active addresses rose by 23.43%
This data indicates increased retail participation and network activity. Additionally, a nearly 29% increase in zero-balance addresses may indicate wallet consolidation or renewed user interest. Social media activity for Shiba Inu has also seen substantial growth, recently reported at 126%.
The alignment of price increases and address growth suggests underlying support for SHIB's price action. Continued growth in addresses could sustain the rally and encourage broader community participation.
Is SHIB Price Out of Danger?
SHIB has broken a descending trendline following a double bottom formation at the $0.00001063 resistance range. This double bottom pattern, a reliable reversal signal, ended a multi-week downtrend. Following this confirmation, SHIB price rallied past the $0.00001428 resistance and is currently around $0.00001507.
SHIB is now approaching the $0.00001580 resistance level, indicating a shift in momentum. This breakout suggests a resurgence of bullish sentiment, potentially leading to recapturing the $0.00001759 zone. A bullish continuation is likely, provided trading volume remains stable and dips are quickly bought.
DMI signals confirm a bullish market structure, with the +DI at 37.57 and the -DI at a depressed 11.60, signaling strong upward movement. The Average Directional Index (ADX) indicates trend strength at 27.98.
This divergence suggests that bulls firmly control the market direction. Historically, these DMI patterns indicate prolonged trends, especially following structural breakouts. Current momentum indicators support the hypothesis that SHIB may extend its rally in the short term.
Good Time to Buy?
In conclusion, Shiba Inu’s surge in token burns, rising open interest, and breakout from technical resistance all point to a bullish short-term outlook. With strong on-chain and momentum indicators, SHIB is well-positioned for further gains. As always, conduct thorough research before investing.