SHIB: Technical Breakout and Token Burns Signal Potential Rally Ahead of Fed Decision

As of December 12, 2025, the Shiba Inu (SHIB) token is showing signs of a potential bullish reversal, trading at $0.0000090 after a 5% surge. This upward movement coincides with a wave of optimism across the broader cryptocurrency market, largely driven by anticipation of an impending interest rate cut from the U.S. Federal Reserve. A critical development underpinning SHIB's momentum is a dramatic 248% spike in its token burn rate over the past 24 hours, which has permanently removed 14.3 million SHIB tokens from circulation. This aggressive reduction in supply is a strong signal of renewed on-chain activity and a concerted effort by the community to enhance the token's scarcity and long-term value proposition. From a technical analysis perspective, SHIB appears to be emerging from oversold conditions, a state often preceding a price recovery. Chart analysts are identifying the formation of classic bullish patterns on SHIB's price charts, suggesting the asset is consolidating and building momentum for a potential breakout. While general market skepticism often surrounds meme coins, these specific technical indicators, combined with fundamental supply-side mechanics, present a compelling case for a shift in sentiment. The confluence of a favorable macro backdrop from the Fed, active tokenomics management through burns, and positive chart structures positions SHIB for a possible significant rally. Investors and traders are now closely watching for a confirmed breakout above key resistance levels, which could validate the bullish pattern and trigger the next leg up for the popular canine-themed cryptocurrency.

Shiba Inu Price Prediction: Chart Pattern Suggests Impending Rally Despite Market Skepticism

The Shiba Inu token has surged 5% to $0.0000090 amid broader crypto market optimism ahead of the Federal Reserve's anticipated rate cut. SHIB's burn rate skyrocketed 248% in 24 hours, with 14.3 million tokens removed from circulation, signaling renewed chain activity.

Technical indicators reveal SHIB emerging from oversold territory, forming bullish chart patterns that hint at a potential breakout. The meme coin's weekly burns total 75.7 million tokens, according to Shibburn tracker data, as traders position for possible monetary policy easing.

Market sentiment contrasts sharply with on-chain metrics and technical setups. 'When fundamentals and technicals align against consensus, that's when explosive moves happen,' observes a veteran chart analyst. The token's $4.98 billion market cap shows 0.43% gains as trading activity accelerates.

Shiba Inu Poised for 500%-1,000% Rally by 2026: Analyst

Crypto Patel, a prominent market analyst, identifies shiba inu (SHIB) approaching a critical historical support zone—a level that preceded three major breakouts: 1,200% in August 2021, 145% in June 2022, and 575% in October 2023. While the latter two surges were short-lived, Patel projects a 500%-1,000% rally within six months, potentially turning a $1,000 investment into $6,000-$11,000 by 2026.

Technical charts show SHIB testing a multi-year trendline that previously triggered parabolic moves. 'The next breakout window is now,' Patel wrote on TradingView, cautioning that volatility remains extreme. The meme coin’s 2021 rally dwarfed even Bitcoin’s returns, but its post-surge corrections have been equally brutal—erasing gains within weeks.

Shytoshi Breaks Silence as 4.13T SHIB Exits Coinbase in Whale Move

Lead Shiba Inu developer Shytoshi Kusama ended an 84-day social media hiatus to spotlight a seismic shift in SHIB holdings. On December 7, a whale extracted 4.13 trillion tokens ($35 million) from Coinbase to a private wallet—the largest single withdrawal observed in months.

The transaction coincides with declining exchange reserves across crypto markets, signaling institutional players are opting for cold storage over active trading. World Blockchain Capital called attention to the move, noting its rarity in recent market activity.

Kusama's retweet of the event marks his first public engagement since mid-September. Market analysts interpret such withdrawals as bullish indicators, reflecting conviction in long-term asset appreciation rather than short-term speculation.

K9 Finance Threatens Shibarium Exit Over Unresolved $2.4M Hack Compensation

K9 Finance, a key liquidity provider for Shiba Inu's Shibarium network, has issued an ultimatum to the SHIB development team regarding September's $2.4 million bridge hack. The firm demands restitution for affected users by January 6, 2026, threatening to withdraw critical staking support otherwise.

The warning comes amid Shiba Inu's ongoing price decline, with K9 Finance claiming no substantive communication from SHIB leadership since the incident. A network exit WOULD destabilize Shibarium's infrastructure during already volatile market conditions.

Notably absent is response from Shytoshi Kusama, Shiba Inu's pseudonymous lead developer. The silence amplifies concerns about project governance as stakeholders await resolution.