SHIB burning peak and whale accumulation suggest a breakout from the descending channel resistance.
SHIB's burn rate has soared to 103,222%, with over 102 million tokens destroyed in 24 hours.
The outflow reached 25.19 billion SHIB, indicating strong accumulation despite low volatility.
Shiba Inu (SHIB) has seen its burn rate skyrocket to an astonishing 103,222% in the past 24 hours, with over 102 million tokens destroyed, effectively tightening the supply in circulation.
This sudden 'deflation storm' comes at a time when overall crypto market signals are mixed, with SHIB's price still dropping over 3% during this period.
Despite price pressure, such aggressive burn actions may reignite bullish expectations in the market and bring new momentum for speculative capital.
Historical data shows that peaks in SHIB's burn rate are often accompanied by increased trading activity and a significant reduction in selling pressure, providing momentum for a rebound.
Can SHIB break free from the downward channel?
SHIB is still operating within a downward channel structure but has recently rebounded from the key demand zone of $0.0000100 to $0.0000120, showing renewed buying interest.
Although the overall trend remains a gradual decline in highs, the pullback near the bottom of the channel shows no significant selling pressure, suggesting that the bulls have not completely exited. Currently, prices are slowly approaching the upper boundary of the channel.
If it can break through this trendline with volume and hold above it, it may signify an impending reversal signal for this long-term downward trend.
According to CryptoQuant data, SHIB's total exchange net flow shows a massive outflow of -25.19 billion, reflecting a 144.3% decrease in the supply held by exchanges.
This behavior indicates that investors are converting their held assets into self-custody, which is typically a bullish signal associated with accumulation and long-term conviction.
Will SHIB's lowest volatility in 30 days drive the next price movement?
SHIB's current volatility has dropped to 64.55%, the lowest in nearly 30 days, indicating that the market is in a compression phase. Such low volatility usually means that prices are about to build momentum within a narrow range, leading to significant fluctuations.
Historically, SHIB tends to follow directional breakouts after entering similar low volatility zones. The current silence may reflect market hesitation or could be a precursor to a significant market movement.
Once the price breaks through the nearby key resistance level, this period of low volatility is expected to become an ideal entry window for bulls, especially if on-chain indicators release positive signals simultaneously.
Will short liquidations above $0.0000132 catalyze a price surge?
OKX's SHIB/USDT liquidation heatmap shows a large number of short liquidation positions in the range of $0.0000132 to $0.0000140, indicating that this area has accumulated a significant amount of high-leverage short positions.
Once SHIB breaks through this area, it could trigger a chain reaction of short liquidations, amplifying upward momentum.
Considering that SHIB is currently approaching this resistance zone while the fundamentals continue to strengthen, the importance of this range cannot be overlooked.
If a successful breakout occurs, it will not only force shorts to stop-loss but may also attract new buying aimed at capitalizing on the 'short squeeze' scenario, thus creating a catalyst for rapid price gains.
Ultimately, as large-scale token burns and significant outflows from exchanges change the supply dynamics, SHIB's fundamentals are rapidly transforming.
The price is still within a descending channel but is now testing its upper limit.
Additionally, the decrease in volatility, increased retail participation, and nearby short-term liquidation zones provide strong reasons for a breakout.
If the bulls maintain control, SHIB could break through $0.0000132 and trigger rapid upward momentum. However, if it fails to break the resistance level, it may extend the sideways movement.
