Shiba Inu Burn Rate Explodes 2,408%—Is the Meme Coin Finally Shaking Off the Bears?

Shiba Inu’s token burn just went thermonuclear—a 2,408% surge in destroyed SHIB. But will this deflationary Hail Mary be enough to flip the script on its bearish slump?

Memecoins and miracles: While the burn rate screams bullish, SHIB’s price action still dances to the tune of crypto’s mood swings. Traders are left wondering if this is the start of a rally or just another ‘number go up’ illusion.

Wall Street would call this ‘aggressive supply-side economics.’ Crypto Twitter calls it ‘wen lambo.’ Somewhere, a hedge fund manager just ordered another martini.

A warning signal?

Despite short-term enthusiasm, all major on-chain indicators currently flash bearish.

At press time, net network growth remained positive but minimal at +0.17%, while the “In the Money” metric dropped by -4.29%, showing that fewer holders were in profit. 

Concentration dipped by -0.03%, and large transactions fell by -4.18%, revealing weakening whale involvement. These metrics suggested that Core network strength and smart money interest were fading. 

This contradiction between price action and on-chain data may be a red flag for overextended bulls betting solely on recent burn momentum.

Source: IntoTheBlock

Will SHIB keep the $0.000013 support zone?

At pres time, SHIB appeared to be consolidating just above $0.00001311, struggling to break the 0.382 Fibonacci level around $0.00001461. 

A bullish scenario WOULD require reclaiming the $0.000014 range, where heavy resistance lies. Meanwhile, the MACD shows narrowing momentum, with a potential crossover forming. 

However, failure to hold the $0.00001228 support could lead to a steeper correction, targeting the 1.618 Fibonacci level at $0.00000995. 

So, price action remains precarious, hinging on the bulls’ ability to protect key short-term levels and flip resistance into support.

Source: TradingView

What rising address activity suggests

Despite bearish metrics, address statistics revealed notable user activity. New addresses jumped by 28.87%, while active addresses ROSE by 47.57%. 

Moreover, zero-balance address creation surged by 117.39%, possibly indicating churn or short-term speculation. This spike may reflect growing retail interest or attempts to capitalize on recent volatility. 

However, without matching improvements in whale participation and profitability metrics, these figures may not support sustainable growth. 

Thus, while address momentum offers some optimism, it should not overshadow the weakening fundamentals seen on-chain.

Source: IntoTheBlock

Will dense liquidation zones trap bulls?

The 24-hour liquidation heatmap revealed high-risk clusters NEAR $0.0000138, indicating aggressive short positioning. If SHIB breaks this level, cascading short liquidations could spark a rapid price spike. 

Conversely, downside clusters between $0.0000126 and $0.0000124 present risk zones, where price could plunge if bulls lose control. 

Therefore, volatility may increase as SHIB tests these key zones, with liquidation events potentially dictating the next major move. Traders should remain alert to how Leveraged bets unfold over the next 48 hours.

Source: Coinglass

Can SHIB break out, or is the rally overstated?

SHIB’s surge in burn rate and user activity offers a bullish narrative, but the broader signals remain mixed. 

On-chain metrics reveal weak whale activity, fewer profitable addresses, and shrinking large transactions, all of which suggest limited support for sustained growth. 

Moreover, SHIB still trades below key resistance and faces liquidation risks near $0.0000138. 

Bulls must push the price above $0.000014 with strong momentum to shift the current structure.  Until then, the rally appears overstated, and the market may remain stuck in short-term volatility.