Shiba Inu’s 1,361% Burn Rate Explodes—Genuine Momentum or Just Another Meme-Coin Mirage?

Shiba Inu’s token burn mechanism just went supernova—1,361% spike in destroyed supply. But in the land of meme coins, even fireworks can fizzle fast.

Is this the start of a deflationary surge or just another pump-and-dump masquerading as ’utility’? Traders cheer; skeptics yawn. After all, when your project’s whitepaper reads like a dog meme, sustainability isn’t exactly the first pitch.

Bonus jab: Wall Street still can’t decide if crypto burns are genius or just fancy stock buybacks for the TikTok generation.

Source: IntoTheBlock

Bullish cup and handle forms: Can SHIB break resistance?

On the technical chart, SHIB appears to be completing a bullish cup and handle formation.

The neckline resistance stands at $0.00001411. A confirmed breakout above this level could propel the token toward the projected target at $0.00001709.

However, there’s a crucial support zone NEAR $0.00001051. Losing this level would invalidate the pattern and potentially open doors to further downside.

With the price consolidating near the neckline, the next few sessions will be critical in determining whether SHIB can maintain bullish momentum or face renewed selling pressure.

Source: TradingView

Is the memecoin’s market setup bullish or overextended?

Of course, this alone doesn’t paint the full picture.

Exchange reserves declined slightly by 0.12% over the last seven days, suggesting reduced selling pressure. This often signals accumulation by long-term holders.

Yet, the 24-hour Netflow plunged by 157.97%, showing that traders recently rushed to deposit SHIB—often a sign of intent to sell.

Source: CryptoQuant

Meanwhile, liquidation data reveal a heavily bullish bias.

At press time, long liquidations totaled $499K, compared to just $12K in shorts. This lopsided leverage often signals frothy optimism—where any failed breakout may trigger a swift shakeout.

Can Shiba Inu maintain its upward momentum?

Despite the 24-hour price dip, SHIB’s spike in burn rate and address activity reflect positive on-chain sentiment. However, exchange and derivatives data expose potential risks tied to over-leveraged optimism. 

For SHIB to truly reverse its downtrend, it must break $0.00001411 with strong volume and sustained inflows. Until then, cautious optimism—not FOMO—may be the smarter play.