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Shiba Inu's burn rate significantly increases by 4833%, raising questions about its impact on SHIB's potential price growth.
Shiba Inu's [\$SHIB]](http://www.shibamemories.com) meteoric rise has caught the attention of many, as the token's 24-hour burn rate skyrocketed by an astonishing 4,833.89%. This dramatic increase hints at renewed community activism and a concerted effort to slash the circulating supply, often perceived as a bullish sign in crypto circles.
Concurrently, the overall sentiment in the crypto market has noticeably brightened, driven by solid price gains across the board.
Whales accumulate SHIB with conviction
Whale activity has been nothing short of impressive, with large holder netflow surging by over 6,050% in the past seven days. This significant accumulation, underscored by a 3,077% monthly rise, indicates a growing sense of confidence among long-term investors.
Historically, such inflows from deep-pocketed investors often foreshadow major price swings, especially when combined with technical structures pointing to bull markets.
Source: IntoTheBlock
Volatility takes a nosedive
Volatility has plunged to 69.20%, marking a 30-day low following a recent high of 84.62% in late April. This dip in volatility represents a transitory stabilization phase, which could serve as a platform for the next substantial price move. Historically, such dips during consolidation periods have frequently preceded explosive breakouts.
Traders put their skin in the SHIB-game
The derivatives sector has witnessed considerable activity, with volume up 27.30% to $122.26 million and Open Interest spiking 11.84%, now standing at $174.12 million. These increases signal a surge in speculative interest and market participation, a precursor to heightened volatility and directional price movements.
Source: CryptoQuant
Exchanges streaming SHIB off-platform
The flow of SHIB tokens off exchanges has picked up pace, with exchange reserves having dropped by 6.57%. Simultaneously, net outflows surged by over 1,558%, suggesting that whales are steadily moving their assets to cold storage.
This shift indicates reduced selling pressure and a heightened sense of long-term commitment among whale investors.
Short-squeezed and ready to rise?
Data from the OKX liquidation heatmap underscores a strong liquidation of short positions as SHIB's price streaked above key resistance zones. These liquidations further exert upward pressure, fueling momentum-driven rallies.
Source: CoinGlass
SHIB has successfully breached a bearish descending wedge and retested the crucial support zone around $0.00001271. Since then, it has been consolidating within a range, forming a bullish rectangle between $0.00001271 and $0.00001600.
At the time of writing, SHIB trades at $0.00001351, having gained 5.37% on the day. The successful breakout and subsequent consolidation suggest a robust structure that may empower a renewed uptrend if sentiment and volume remain elevated in the coming days.
Source: TradingView
Will SHIB stage a breakout?
On-chain accumulation, escalating derivatives activity, declining volatility, and shrinking short positions all point to an intensifying bullish sentiment surrounding SHIB.
If the price manages to break above the $0.00001600 threshold with strong volume, the next target could be the $0.00002400 region. Thus, current trends suggest SHIB may be gearing up for a breakout, positioning itself for another leg in its rally.
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- The increased burn rate of Shiba Inu's token and the surge in whale accumulation have fueled a bullish sentiment in the crypto market, with the overall market sentiment noticeably brightening due to solid price gains.
- The decreased volatility of Shiba Inu's token, coupled with the surge in speculative interest and market participation in the derivatives sector, could serve as a platform for the next substantial price move, with historical trends suggesting that dips during consolidation periods often precede explosive breakouts.
- The shift of Shiba Inu tokens off exchanges, indicated by a decline in exchange reserves and a surge in net outflows, might reduce selling pressure and suggest a heightened sense of long-term commitment among whale investors, potentially leading to another leg in the rally.
