$SHIB Burn Rate Spikes 1,361% — Can SHIB Break $0.00001411 and Maintain Momentum?
Shiba Inu’s burn rate surged by 1,361%, prompting speculation about a potential bullish move. Although SHIB price fell over 4% to $0.00001309, on-chain data reveals increased wallet activity, hinting at a possible buildup toward a bullish trend. However, the sustainability of this rally remains uncertain.
Burn Rate Surge and Wallet Activity Indicate Fresh Engagement
Recent on-chain data shows new addresses increased by 22.10%, active addresses grew by 23.07%, and zero-balance wallets surged 31.41%. These metrics suggest fresh inflows and renewed interest, but without institutional support or whale participation, the rally could be short-lived.
Resistance at $0.00001411: Key to SHIB’s Rally Continuation
SHIB is forming a bullish cup-and-handle pattern, with resistance at $0.00001411. A breakout could propel SHIB towards $0.00001709. However, this requires strong volume and momentum. Failing to maintain support at $0.00001051 could invalidate the pattern and lead to a decline.
Mixed Market Signals Create Uncertainty
While a 0.12% decline in exchange reserves suggests accumulation, a 157.97% drop in netflows indicates rising deposits, which often precede sell pressure. This divergence points to conflicting trader sentiment and adds uncertainty to SHIB’s outlook.
Long Positions Dominate: Risk of a Reversal
Liquidation data shows a heavy bias towards long positions, with nearly $499K in long liquidations in the past 24 hours. This imbalance could lead to a sharp reversal if momentum stalls. SHIB must break resistance convincingly to validate the rally; otherwise, traders risk cascading liquidations.
What’s Next for SHIB?
To sustain bullish momentum, SHIB needs to break $0.00001411 with strong volume and continued wallet growth. While burn rate and activity trends are promising, the market remains fragile. Monitoring whale actions and broader market conditions is key to understanding SHIB’s future path.