SHIB Price Jumps Over 7% as One of Its Biggest Token Burns Events Takes Place

SHIB is up, surging over 7% in the past week, fueled by one of its largest token burns.

Shiba Inu (SHIB) has begun this week in the green, with the meme coin surging over 7% in the past week. Onchain data shows that one of SHIB’s largest token burns yet may have sparked the price increase.

A massive 535,850,180 SHIB tokens were permanently removed from circulation, according to Shibburn. This triggered a staggering 416% increase in the weekly burn rate, a factor that clearly contributed to the price jump.

SHIB is currently trading at $0.00001311. As the meme coin continues to be a hot topic, let’s look at what can keep this momentum to continue.

What’s Driving the SHIB Token Burn?

Data from Shibburn showed that in a single burn event, 459,294,504 SHIB were taken out of circulation, making it the biggest burn of the past week.

These burns are a community effort, designed to increase scarcity and potentially drive up the price. So far, these have been executed through multiple avenues, including the SHIB team utilizing BONE gas fees from Shibarium and rival meme coin projects keen to gain traction by sending large amounts of SHIB to dead wallets.

The growing trend of supply reduction has reignited discussions on whether this could fuel a parabolic price move.

Can SHIB Break Through Key Resistance?

Market analysts remain cautiously optimistic. Despite the weekly surge, SHIB’s breakout target of $0.0081 remains unchanged. Technical indicators suggest that the token continues to respect its breakout structure, leaving the door open for a nearly 500% upside.

However, sustained bullish momentum and increased buyer activity will be crucial in determining whether SHIB can achieve this ambitious target. In the near term, traders should watch for a sustained move above the $0.0081 level.

Concerning the parabolic price rise after the token burns, analysts suggest that SHIB’s price discovery will continue as the market currently favors assets that have performed well in the past.

While token burns play a leading role in supply reduction, they don’t guarantee an immediate price spike. Traders are now keeping an eye on whale activity and broader market conditions to gauge whether SHIB can sustain this momentum or if a correction is imminent.