Shiba Inu Price Eyes 81% Breakout Potential as SHIB Burn Rate Soars

Highlights:

• Shiba Inu price showing signs of reversal after breakout from the descending channel.
• SHIB’s burn rate went up 770,000%, which means more scarcity efforts.
• If the current trend continues, technicals are pointing to SHIB to test key resistances.

The second-largest memecoin, Shiba Inu, has witnessed significant price swings, dropping from the $0.00001500 to the $0.00001100 region. However, for the last few days, there has been reduced volatility, and prices have been consolidating around levels at $0.00001200 as sell pressure disappears.

At press time, SHIB is exchanging hands at $0.00001286, up by 2.45% in the past 24 hours. The memecoin began today’s trading session at a low point at $0.00001250, later increasing to $0.00001280, where it faced rejection in a move that prompted a slight correction.

The memecoin is down 17% on the weekly chart following the overall bearish trend, where the majority of tokens lost their earlier gains. Its market capitalization is $7.48 billion, and its volume is $108 million.

Shiba Inu Price Breakout Could Lead to 81% Upside Potential

Shiba Inu indicates early indications of a price Reversal. The memecoin has just jumped from a descending channel that it had been stuck in since December 2024. On the daily chart, SHIB was trading within a falling wedge pattern on which this breakout occurred.

SHIB has tested the upper boundary of this pattern during the recent price movement. It peaked at $0.00001303 and bottomed at $0.00001293. These fluctuations show that the price is consolidating near the key resistance level.

Looking at the analyst’s chart analysis, SHIB could see some substantial gains in case of a further move upwards. If the price manages to cross the resistance level it could surge even up to 81% to hit $0.00002354.

SHIB Burn Rate Sees Sharp Surge

Shibburn data indicates the burn rate of Shiba Inu increased by 770,000% in the last 24 hours. During this time, 18.7 million SHIB tokens were destroyed from circulation. This increase in burn activity is a sign of the Shiba Inu community’s increased efforts to decrease the token supply.

HOURLY SHIB UPDATE$SHIB Price: $0.00001272 (1hr -0.55% ▼ | 24hr 1.19% ▲ )
Market Cap: $7,498,672,453 (1.37% ▲)
Total Supply: 589,254,594,856,981

TOKENS BURNT
Past 24Hrs: 18,703,614 (771819.69% ▲)
Past 7 Days: 74,908,067 (-86.02% ▼)

— Shibburn (@shibburn) March 22, 2025

This surge in token burns comes as part of the ongoing strategy of increasing scarcity. Such actions have been focused on by Shiba Inu holders toward reducing the total Shiba Inu circulating supply. However, the involvement of the community in this is still crucial.

However, the short-term spike contrasts sharply with the broader trend over the past week. Shiba Inu’s burn rate dropped 86% in the last seven days. During this period, only 74.9 million SHIB tokens were burned indicating a decrease in burn activities.

Technical Indicators: Will the Bullish Momentum Reverse the Continuous Downtrend?

Looking at the technical indicators on the daily chart, SHIB’s price is forming a trend reversal from the descending pattern. The price bounced off from the key support at $0.00001080 and is trading slightly below the immediate resistance at $0.00001392.

Should the current trend hold, SHIB could break above this level and be ready to challenge the next resistance at the $0.00001742 region. A successful break above this mark could see SHIB heading for the key resistance at $0.00002500. 

Indicators such as the RSI and MACD are backing the price reversal as they trend positively. The RSI has climbed to the neutral region from the oversold region, indicating increased buying pressure. Additionally, the MACD line is trending above the signal line, and the histogram forming green bars indicating a robust bullish momentum.