Driven by whale inflows, burn peaks, and the descending wedge setup, SHIB's price trend has gained momentum.
Whale inflows and token burn have surged, while the NVT ratio suggests a risk of overvaluation.
Network growth is slowing, but SHIB still has the potential to break out of the bullish wedge pattern.
Shiba Inu [SHIB] has recently seen a significant rebound in investor participation, with whale inflows surging by 6,306% after the Shibarium upgrade introduced multi-gas token support and enhanced smart contract capabilities.
As of the time of writing, SHIB's trading price is close to $0.00001160, thanks to rising speculative interest. In fact, large holders may also be reconfiguring their positions, especially as futures trading volume surged to $147.27 million (mainly from Gate.io).
Such a massive influx of funds may be a sign of revived confidence among mature traders. In short, the narrative around Shiba Inu's smart contracts is reshaping investor confidence and may lay the groundwork for a new bull market chapter.
Does a large-scale burn of Shiba Inu indicate that the token's utility will be restored?
Token burn activity has been massively reinitiated, with over 1.19 billion SHIB burned in the past week, representing a 1,499% increase.
Moreover, the burn volume surged by 958% within 24 hours, reflecting a sudden shift in on-chain activity. Meanwhile, SHIB's daily circulation skyrocketed to an astonishing 494.8 billion tokens.
This may be a sign of increased token circulation speed, likely stimulated by speculative demand. However, these developments may also indicate an increase in short-term trading and arbitrage activity.
If this positive burn momentum continues, it could enhance SHIB's deflationary appeal and strengthen bullish sentiment among long-term holders.
Is the value increase of SHIB faster than...?
Despite positive signs in token circulation and price trends, the NVT ratio has skyrocketed to 1,194, marking the highest level in months. This metric compares market capitalization to trading volume, and such a steep rise usually indicates overvaluation.
Therefore, while short-term traders may continue to accumulate, the trading utility of the network may become disconnected from its rising market capitalization. Historically, a sharp rise in NVT often precedes market corrections or cooling phases.
Therefore, while investor sentiment may be rising, caution is still warranted unless trading volume catches up with market cap growth.
With the network growth rate being so low, can Shiba Inu maintain its growth momentum?
Interestingly, SHIB's network growth has plummeted to just 476 new addresses—this starkly contrasts with the increasing whale traffic and token circulation speed. While speculative interest has surged, the adoption of new users has remained low.
If this divergence continues, it may limit its long-term sustainability. Typically, a strong rebound is often accompanied by an increase in wallet creation and user engagement, both of which have recently declined.
Therefore, for SHIB to maintain momentum beyond the current hype cycle, real-world usage and organic network expansion must improve significantly.
Can SHIB break out of the descending wedge and rise by 27%?
From a technical standpoint, SHIB is currently in a descending wedge (a bullish reversal pattern) while maintaining strong support.
Price trend analysis shows a clear accumulation below the resistance trend line, with the potential to bounce back to a target area of $0.00001448. Given the sound market structure, traders can expect a confirmation of the breakout.
However, success depends on maintaining bullish momentum despite conflicting fundamental factors like slowing network growth. Therefore, confirming the breakout will be a key trigger that could shift market sentiment from cautiously optimistic to firmly bullish.
Recent indicators for SHIB present a complex situation. Whale inflows and token burn suggest increasing bullish pressure, but the rise in NVT and weak network growth could pose fundamental risks.
Therefore, unless user adoption and trading activity rise alongside the price, SHIB may struggle to maintain a comprehensive breakout.
However, if the descending wedge pattern materializes and the token regains on-chain momentum, the likelihood of a short-term increase remains high.
