Shiba Inu (SHIB) on Fire: Key Levels to Watch After 103,000% Burn Rate Explosion

Shiba Inu just torched the record books—its burn rate spiked a jaw-dropping 103,000%. Now, traders are scrambling to map the next move.

### Where’s SHIB Headed Next?

The meme coin’s blistering burn rate has traders split: Is this a supply shock in the making or just another crypto hype cycle? Key support and resistance levels are flashing on charts like emergency signals.

### The Cynic’s Corner

Sure, burning tokens sounds bullish—until you remember this is the same market where ‘fundamentals’ once meant a dog on a coin. But hey, 103K% is 103K%.

### The Bottom Line

Whether you’re riding the hype or betting on a pullback, SHIB’s price action just got a lot more interesting. Strap in.

Can SHIB break free from its descending channel? 

SHIB continues to trade within a persistent descending channel structure. However, the token recently bounced from a clearly defined demand zone between $0.0000100 and $0.0000120, suggesting the presence of strong buyer interest. 

Despite ongoing lower highs, this reaction NEAR the channel bottom shows that bulls are not yet sidelined. Now, SHIB is inching toward the upper boundary of the structure. 

Therefore, if the price closes above this trendline with volume confirmation, it could signal a potential breakout and reversal of the prolonged downtrend.

Source: TradingView

SHIB’s total exchange netflow shows a massive -25.19B outflow, reflecting a 144.3% decline in supply held on exchanges, as per CryptoQuant data. 

This behavior suggests investors are moving their holdings to self-custody, often a bullish signal associated with accumulation and long-term conviction. 

Will SHIB’s lowest volatility in 30 days fuel the next move?

SHIB volatility has dropped to 64.55%, its lowest reading in the past thirty days. This kind of compression typically precedes sharp directional moves as the price coils within a tight range. 

The last time SHIB saw similar low volatility, it experienced a notable breakout shortly after. While reduced volatility can suggest market indecision, it can also hint at explosive setups. 

Therefore, this calm phase could offer bulls an entry if price pushes beyond nearby resistance, especially as momentum builds from other on-chain indicators.

Source: IntoTheBlock

Will short liquidations above $0.0000132 catalyze a price surge?

The OKX SHIB/USDT liquidation heatmap reveals dense short liquidation zones between $0.0000132 and $0.0000140. These clusters represent high-leverage traders vulnerable to forced exits. 

Therefore, if SHIB manages to break above this range, it could trigger a cascade of short liquidations, adding fuel to upward momentum. 

Given the token’s current positioning near resistance and strong fundamentals, this zone becomes critical. 

A breakout above it WOULD not only trap shorts, but also likely attract fresh buyers anticipating the squeeze.

Source: CoinGlass

Ultimately, SHIB’s fundamentals have rapidly shifted as aggressive token burns, and massive exchange outflows alter supply dynamics. 

The price remains trapped in a descending channel, but it now tests its upper boundary. 

Additionally, reduced volatility, strong retail participation, and nearby short liquidation zones build a strong case for a breakout. 

If bulls maintain control, SHIB could rally beyond $0.0000132 and trigger rapid momentum. However, failure to clear resistance could prolong the sideways trend.