35 Million SHIB Burned in 24 Hours – Is Shiba Inu on the Verge of a Breakout?

Shiba Inu's [SHIB] ecosystem is buzzing with energy following a remarkable 1,822% increase in its burn rate, which has seen over 35 million SHIB tokens removed from circulation in just 24 hours. This significant drop in available supply is attracting the attention of traders who closely watch periods of reduced supply coupled with rising demand.

Key Takeaways

Over 35 million SHIB tokens were burned in 24 hours, increasing the burn rate by 1,822%.
The decrease in circulating supply and the resurgence of demands could lead to a price increase.
Ongoing efforts to resolve the Shibarium exploit are improving investor confidence.
SHIB is testing crucial resistance levels, with potential for a breakout if it closes above $0.00000890.
Rising Open Interest and strong cumulative buyer indicators suggest that traders are preparing for a significant market move.

Shiba Inu nears critical zone - Is SHIB preparing for a major upside move?

Moreover, the surging burn rates correspond with an uptick in market participation, bolstering expectations of short-term stability for SHIB. The decreased token supply naturally exerts pressure on sellers, as the limited availability raises costs, which in turn may push prices higher. Nonetheless, the market is monitoring whether this burning activity can sustain its momentum since isolated spikes rarely lead to lasting changes in direction. Thus, SHIB's current rally injects optimism into its recovery narrative, particularly as it approaches a crucial breakout zone.

Can Shibarium’s Redevelopment Calm SHIB’s Uncertainty?

SHIB has regained attention as the team works diligently to address the Shibarium exploit, which previously disrupted the ecosystem. Confidence is building as attempts are made to trace stolen funds through platforms like KuCoin, along with partnerships with organizations such as the FBI and INTERPOL. This clear commitment to transparency reassures holders who may have doubted the project’s resilience during a tumultuous three-month period. In general, markets tend to favor assets that showcase accountability, especially during times of fragile sentiment. However, investors remain vigilant regarding the timeline for resolution, as credibility hinges on ongoing progress rather than mere announcements. The enhanced communication now supports SHIB's technical status, which already indicates signs of an early recovery.

SHIB Advances Toward a Breakout

As of the most recent updates, SHIB was trading at $0.00000868, pressing against the upper trendline of a descending channel that has restrained every rally since September. The immediate resistance is found at approximately $0.00000890, followed by a key breakout level at $0.00001023, where the price has previously faced two rejections. Additionally, $0.00000798 serves as intraday support, while $0.00000770 underpins the broader structure.

The MACD indicator shows signs of strengthening as its histogram turns green and both lines trend upward, thereby exerting increased pressure at the channel's ceiling. The Parabolic SAR indicator is positioned below the price, illustrating rising bullish intent. However, SHIB must achieve a solid close above $0.00000890 to validate a breakout that sets the stage for a potential climb toward $0.00001023.

SHIB technical analysis
Source: TradingView

Increasing Open Interest Signals Growing Interest

At the time of writing, Open Interest (OI) has surged by 14.92% to reach $91.77 million. This uptick indicates a rise in leveraged positions as traders attempt to predict an impending breakout. Typically, increased OI suggests growing volatility, as aggressive positioning occurs when prices test structural turning points. Furthermore, this rise aligns with the recent spike in token burns and improving technical momentum, creating a cohesive narrative of rising conviction.

However, traders should stay cautious, as high leverage can result in sharp liquidations if SHIB experiences sudden rejections near resistance levels. The current buildup of positions suggests that the market is preparing for a decisive move rather than hesitancy. SHIB now occupies a territory where activity in derivatives could amplify upward movement if it surpasses its immediate resistance ceiling.

SHIB open interest
Source: CoinGlass

Buyer Momentum Strengthens!

The Taker Buy Cumulative Volume Delta (CVD) has shown significant growth over the past 90 days, indicating that buyers are consistently taking offers and sustaining short-term momentum. This trend reveals aggressive accumulation during early shifts in market direction, with strong buyers exerting more influence than passive liquidity.

SHIB’s liquidation heatmap reveals dense areas between $0.0000084 and $0.0000087, which may prompt cascading short liquidations if the price continues to rise. Continued buyer pressure is crucial, as weakening flows can stall momentum at the channel's resistance. With the strength of the CVD, improvement in the MACD, and alignment at the channel ceiling, SHIB’s order-flow structure increasingly favors potential upward movement if buyers maintain dominance.

SHIB Spot Taker CVD (Cumulative Volume Delta, 90-day)
Source: CryptoQuant

Is SHIB on the Brink of a Breakout?

Currently, SHIB stands at the intersection of several compelling catalysts: a substantial spike in token burns, improved sentiment surrounding Shibarium, rising momentum against channel resistance, stronger positioning in derivatives, and dominant buy-side order flow. These factors collectively suggest that SHIB could realistically break above the $0.00000890 mark and potentially aim for $0.00001023, as long as current market participation remains steady.

Final Thoughts

As Shiba Inu navigates through this pivotal moment, the mix of increased burning activity, renewed project confidence, and strong market indicators creates a compelling case for a potential breakout. The next few days will prove critical as traders and investors watch closely for momentum in SHIB’s price action.