Recently, the Shiba Inu (SHIB) community has shown strong activity, with its token burn rate skyrocketing to 4,833.89% in 24 hours, highlighting a significant strengthening of circulation control. A large number of tokens destroyed has reduced the available supply in the market, which is generally seen as a positive signal for price increases.

Market sentiment is warming, with whales accelerating their positioning.

Against the backdrop of a moderate price increase, the overall sentiment in the SHIB market has shown a positive shift, with volatility dropping to 69.20%, the lowest level in the past 30 days, indicating that prices are stabilizing in the short term.

Meanwhile, the behavior of 'whale' investors holding a large amount of SHIB has also become significantly active.

Data shows that in the past seven days, net inflows from large holders have surged over 6,050%, with monthly growth reaching as high as 3,077%, indicating that long-term capital is continuously entering the market.

Volatility falling builds a base for upward movement.

SHIB reached a volatility peak of 84.62% at the end of April, and the current downward trend reflects that the market is entering a consolidation phase in the short term.

According to historical data, volatility consolidating at low levels usually signals an impending strong price breakout.

The derivatives market is heating up, with increased speculative interest.

The derivatives market is also performing strongly, with daily trading volume of SHIB-related contracts increasing by 27.30% to $122.26 million, while open interest grew by 11.84%, totaling $174.12 million.

These data indicate that speculative funds are intensively entering, significantly increasing market participation and building momentum for upcoming price fluctuations.

Declining foreign exchange reserves and capital outflows indicate enhanced confidence in positions.

On-chain data shows that SHIB's foreign exchange reserves have decreased by 6.57% over the past period, while net outflows have surged to 1,558%.

This indicates that a large number of tokens are being transferred to cold wallets, with investors preferring long-term holding over short-term trading, alleviating selling pressure.

Short liquidations boost price rebound

The liquidation heatmap from OKX indicates that after SHIB broke through the key technical resistance zone ($0.0000132 to $0.0000138), it triggered a large-scale short liquidation.

Due to forced liquidation of short positions, bullish momentum has been further strengthened. Such liquidation events usually help boost prices in the short term.

Technical structure supports a bullish pattern, with key resistance levels about to be tested.

Currently, SHIB has broken through the previous descending wedge pattern and successfully confirmed a pullback near $0.00001271.

Subsequently, its price entered the range of $0.00001271 to $0.00001600, forming a typical bullish rectangle consolidation pattern.

As of now, SHIB is quoted at $0.00001351, with a daily increase of 5.37%.

Summary: SHIB may be poised for a breakout, focus on the $0.00001600 level.

Considering on-chain data, market sentiment, technical patterns, and derivative performance, SHIB is currently at a critical junction of technical and fundamental resonance.

If the price breaks through the $0.00001600 range within the next few days with strong trading volume, the upper target may quickly aim for $0.00002400.

The market is watching to see if SHIB will initiate a new round of bullish cycles.