Shiba Inu (SHIB) Could Be Setting Up for a Major Breakout as Its Token Burn Rate Surges 984%

SHIB's burn rate has jumped dramatically over the past 24 hours, with nearly a 984% increase in the number of tokens being destroyed.

Shiba Inu (SHIB) has been a hot topic in the crypto community, and for good reason. The popular meme coin has seen a massive 984% increase in its token burn rate over the past 24 hours. This signals a strong commitment by the SHIB community to shrink its circulating supply, which could lead to even stronger price movements.

At the same time, technical indicators are also looking promising, with SHIB recently breaking free from a long-standing descending trendline and successfully retesting this level as new support. This pattern aligns with the formation of a “cup and handle”, a classic bullish pattern that often signals the beginning of a strong rally.

If this pattern continues to play out, SHIB could be looking at a price target of $0.00002096, which represents a 70% price surge from current levels. The cup and handle structure typically shows shrinking volatility, which means that once SHIB surpasses resistance at $0.00001548, the price could quickly gain momentum and push higher.

Furthermore, whale activity and exchange outflows are also signaling bullish trends. Over the past 24 hours, 54.5 billion SHIB tokens have been withdrawn from exchanges, representing a -17.1% change in exchange netflow. This suggests that investors are moving their SHIB tokens off exchanges, likely to hold them in wallets for the long term rather than selling.

This behavior is often indicative of accumulation before a price rise, as investors prepare for an expected rally. The withdrawal of SHIB tokens also reduces the selling pressure on exchanges, making it easier for the price to rise.

However, despite the strong technical and on-chain signals, market sentiment towards SHIB remains slightly negative. According to Santiment, SHIB’s weighted sentiment is currently at -0.189, indicating a level of skepticism in the market.

Historically, however, negative sentiment during bullish setups has often acted as a contrarian indicator, meaning that the prevailing pessimism could fuel an even stronger rally as traders begin to realize the strength of the underlying market conditions.

Additionally, short positions have been liquidated as SHIB’s price pushes higher. This trend, coupled with the absence of significant resistance above current levels, could lead to further upward momentum for SHIB.

Overall, all signs are pointing towards a potential rally for Shiba Inu. The combination of a significant burn rate increase, a bullish technical pattern, and positive on-chain activity suggests that SHIB could be on the cusp of a breakout.

If SHIB manages to maintain its momentum and break through key resistance levels, a 70% price surge could be just around the corner. However, as always, investors should proceed with caution and factor in their own risk tolerance and investment goals.