Shiba Inu Signals Breakout Amid Burn Surge & Whale Buys
Key Takeaways
- The burn rate of Shiba Inu (SHIB) surged by 4,833% within 24 hours.
- Large investors (whales) are increasingly accumulating SHIB tokens.
- Low volatility and rising trading volume suggest a potential breakout.
- Short positions are being liquidated – a bullish signal.
- SHIB is currently consolidating in a narrow price range between $0.00001271 and $0.00001600.
Burn Rate Explodes – What Does It Mean?
The Shiba Inu community has burned approximately 4,833% more tokens in a single day compared to previous periods. Token burning refers to permanently removing tokens from circulation, with the goal of reducing supply – which can support price growth in the long term.
Such a sharp increase in the burn rate indicates that the community is actively working to reduce supply. This may signal growing confidence in SHIB’s long-term prospects.
Whales Are Betting on Shiba Inu
Over the past seven days, the net inflow into large wallets has increased by more than 6,050%. On a monthly basis, the increase stands at 3,077%. These movements suggest that large investors view SHIB as undervalued and are speculating on a price increase.
When whales buy in large volumes, the likelihood of a price increase often rises – especially under stable market conditions.
Volatility Drops – Calm Before the Storm?
SHIB’s current volatility is at 69.20% – the lowest level in the past 30 days. At the end of April, it was still at 84.62%. A drop in volatility during a consolidation phase can point to an imminent breakout.
Historically, such phases are often followed by strong price movements – either upward or downward. In this case, additional indicators suggest a more bullish scenario.
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Derivatives Market Shows Growing Interest
Trading volume in the derivatives market rose by 27.30% to USD 122.26 million. At the same time, open interest – the total amount of open positions – increased by 11.84% to USD 174.12 million.
These figures show that traders are increasingly betting on SHIB. Rising activity in the derivatives market often correlates with increased volatility and price action.
Tokens Leaving Exchanges
SHIB balances on centralized exchanges dropped by 6.57%. At the same time, net outflows rose by over 1,558%. This means investors are transferring their tokens to external wallets, likely for long-term holding.
Fewer tokens on exchanges typically indicate reduced selling pressure – another bullish signal.
Short Liquidations Drive Price Up
According to data from the OKX exchange, many short positions were liquidated when SHIB broke through resistance levels at $0.0000132 and $0.0000138. Such liquidations force traders to buy back – adding additional buying pressure.
This development supports a continuation of the upward trend, provided the momentum holds.
Technical Analysis: Consolidation in a Bullish Rectangle
SHIB recently broke upwards out of a falling wedge pattern and successfully tested support at $0.00001271. Since then, the price has been moving within a range between $0.00001271 and $0.00001600.
At the time of analysis, the price stands at $0.00001351 – a daily gain of 5.37%. This stable consolidation following a breakout is often a sign of a healthy market.
Our Assessment
The combination of a rising burn rate, whale accumulation, decreasing volatility, and growing interest in derivatives points to a bullish market phase for Shiba Inu. If the price breaks the resistance at $0.00001600 with volume, the next target could be around $0.00002400.
However, it remains to be seen whether the momentum will continue. For short-term traders, current conditions are exciting – while long-term investors should monitor the development closely.
Sources
- IntoTheBlock
- CryptoQuant
- CoinGlass
- TradingView
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