Shiba Inu (SHIB) is showing signs of a potential breakout as a confluence of market indicators and an accelerated burn rate bolster bullish sentiment. The cryptocurrency, which has faced sustained downward pressure in recent months, is attracting renewed trader interest following a sharp increase in token burns and improving market positioning.
In the past 24 hours, SHIB’s burn rate surged by 3,763%, leading to the removal of 30,385,607 tokens from circulation. This move, driven by community-led initiatives, has heightened expectations of increased scarcity and potential price appreciation.
Over the past seven days, 88,587,310 SHIB tokens have been burned, reflecting a 22.96% decline compared to the previous week. Despite recent losses, traders are eyeing a rebound as demand remains steady.
Market Sentiment and Trading Activity
SHIB’s recent price movements have mirrored broader trends in the cryptocurrency market, where meme coins, including Dogecoin (DOGE), Pepe (PEPE), and Floki (FLOKI), have all suffered double-digit losses. SHIB has dropped 61% from its December 2024 high of $0.0000329, marking its lowest point since September 2024. However, historical data suggests that similar price conditions have preceded sharp rebounds in the past.
A key indicator, the Market Value to Realized Value (MVRV) Z-score, currently sits at -2.143—its lowest level since August last year. Previously, when the MVRV indicator dropped to similar levels, SHIB surged by 215% to its December peak. This suggests that the token’s current valuation may present a buying opportunity for long-term investors.
Burn Rate Acceleration and Supply Reduction
One of the primary catalysts for SHIB’s potential recovery is its soaring burn rate. The token burn mechanism, which involves transferring coins to an inaccessible address, has significantly reduced SHIB’s circulating supply. Over the past 24 hours, 30,385,607 SHIB tokens were removed from circulation—a 3,763.66% increase from the previous day. However, the weekly burn rate has decreased by 22.96%, with 88,587,310 tokens burned in the past seven days.
Since its inception, SHIB’s burn strategy has incinerated over 410 trillion tokens, leaving a circulating supply of approximately 584 trillion. While the overall supply remains substantial, the accelerating burn rate could contribute to upward price pressure, especially if demand remains steady.
Despite its recent struggles, SHIB is exhibiting early signs of a potential rebound. The combination of rising investor confidence, steady community engagement, and the latest burn data suggests that bullish momentum may be building.
