SHIB Primed for Breakout: 3 Catalysts That Could Ignite Shiba Inu’s Next Rally

Shiba Inu defies meme coin stereotypes as fundamental developments signal potential upside momentum.

Burn Mechanism Accelerates

SHIB's automated token burn system systematically reduces supply—creating artificial scarcity that historically precedes price surges. The deflationary mechanics mirror successful crypto economic models.

Ecosystem Expansion

Shibarium's layer-2 solution processes transactions at fractional Ethereum costs while Shibaswap gains DeFi market share. Real utility emerges beyond dog-themed memes.

Market Cycle Alignment

Historical data shows altcoins like SHIB typically outperform Bitcoin during specific market phases. Current indicators suggest we're entering that window now—because what's finance without a little cyclical speculation?

The meme coin that refused to die now builds legitimate foundations. Whether that translates to gains remains crypto's eternal question.

Can SHIB Reclaim Its Former Glory?

Despite its sporadic price increases, shiba inu (SHIB) has been on an evident downfall since the beginning of the year. As of this writing, it is worth approximately $0.00001223, representing a 42% decline from its value on the first day of 2025. The asset’s market capitalization has plunged to $7.2 billion, whereas top competitors like MemeCore (M) and Pepe (PEPE) have started closing the gap to it.

However, it’s not all doom and gloom for SHIB as three important factors suggest a rebound could be on the horizon. The Shiba Inu burn rate has exploded by over 200,000% in the past 24 hours, resulting in hundreds of thousands of tokens sent to a null address. While the USD equivalent of the destroyed stash is negligible, ongoing burns gradually reduce SHIB’s supply, which could drive its value higher if demand remains intact.

Next on the list is the meme coin’s exchange netflow, which in the past week has turned negative. This means that investors have switched from centralized platforms toward self-custody methods, thus reducing the immediate selling pressure.

Last but not least, we will touch upon Shiba Inu’s Relative Strength Index (RSI). The indicator, which measures the speed and magnitude of the latest price changes, recently dipped to 20, or its lowest level observed in the past three months. 

Readings below 30 signal that the asset has entered oversold territory and could be poised for a rebound. In the following hours, the RSI headed north but remains close to the bullish zone.

Something for the Bears

The weak activity on Shibarium, though, suggests that Shiba Inu’s problems might be far from over. Daily transactions processed on the layer-2 blockchain solution were in the millions earlier this year, but over the last few weeks, the figure dipped under 20,000. 

Moreover, Shibarium’s security was breached in mid-September. According to some reports, the attack was carried out using a flash loan to purchase 4.6 million BONE tokens.

LUCIE, the pseudonymous marketing strategist of Shibarium, said the protocol was not hacked and clarified that the issue stemmed from stolen validator keys used to push a fake state. They also assured that investors’ funds are SAFE as they are secured in multisig cold storage.