Shiba Inu’s 6,306% Surge: Breakout or Bull Trap? Here’s What You Need to Know

Shiba Inu just flashed a jaw-dropping 6,306% spike in inflows—but is this the real deal or another crypto mirage?

### The Make-or-Break Moment for SHIB

Markets are frothing over Shiba Inu's latest price action. Either the meme coin's gearing up to smash resistance… or luring greedy traders into a classic pump-and-dump. No middle ground.

### Follow the Money (Before It Disappears)

That 6,306% inflow figure isn’t a typo—it’s the kind of number that makes hedge fund managers spill their lattes. But in crypto-land, today’s rocket fuel can be tomorrow’s exit liquidity. Watch the volume like a hawk.

### The Cynic’s Corner

Let’s be real—if Wall Street pulled this kind of volatility, the SEC would lose its mind. But hey, ‘decentralization’ means never having to say you’re sorry… until the chart nosedives.

Are massive Shiba Inu burns a signal of renewed token utility?

Token burns have reignited aggressively, with over 1.19 billion SHIB burned in the past week – Marking a 1,499% hike. 

Additionally, 24-hour burns soared by 958%, reflecting a sudden shift in on-chain activity. At the same time, SHIB’s daily circulation spiked to an eye-catching 494.8 billion tokens. 

This could be a sign of higher velocity of tokens, likely spurred by speculative demand. However, these developments could also signify greater short-term trading and arbitrage activity. 

If sustained, this aggressive burn momentum may enhance the deflationary appeal of SHIB and reinforce bullish sentiment among long-term holders.

Source: Santiment

Is SHIB’s value rising faster than…

Despite positive signs in token FLOW and price action, the NVT ratio has surged to 1,194 – Its highest level in months. This metric compares market cap to transaction volume, and such a steep rise often alludes to overvaluation. 

Therefore, while short-term traders may continue accumulating, the network’s transactional utility could be disconnected from its rising market value. Historically, sharp spikes in NVT precede corrections or cooling phases. 

Thus, although investor Optimism may be mounting, caution is warranted unless transactional throughput catches up with market cap growth.

Source: Santiment

Can Shiba Inu maintain momentum with network growth this low?

Interestingly, SHIB’s network growth has collapsed to just 476 new addresses – A stark contrast to rising whale flows and token velocity. While speculative interest has soared, new user adoption has been muted. 

This divergence could limit long-term sustainability if it persists. Typically, strong rallies are backed by rising wallet creation and user participation, both of which have been lacking lately. 

Therefore, for SHIB to maintain any momentum beyond the prevailing HYPE cycle, real-world usage and organic network expansion must improve meaningfully.

Source: Santiment

Will SHIB break out of its falling wedge for a 27% upside?

Technically, SHIB is coiling within a falling wedge—a bullish reversal pattern—while holding strong support. 

Price action analysis revealed a clear accumulation beneath the resistance trendline, with potential to rally towards the $0.00001448 target zone. With the market structure intact, traders can anticipate a breakout confirmation. 

However, success depends on maintaining bullish momentum, despite conflicting fundamentals like declining network growth. Therefore, breakout confirmation will be the key trigger that could flip sentiment from cautious optimism to decisive bullish conviction.

Source: TradingView

SHIB’s recent metrics present a complex picture. Whale inflows and token burns hinted at mounting bullish pressure, but elevated NVT and weak network growth could introduce fundamental risks. 

Therefore, unless user adoption and transaction activity rise alongside the price, SHIB may struggle to sustain a full breakout. 

Still, if the falling wedge pattern plays out and the token regains on-chain momentum, a short-term upside remains plausible.