SHIB’s Burn Rate Skyrockets By 4,833%

Token destruction efforts like this are often considered a bullish signal, reflecting growing interest in increasing the value of SHIB over time.

This sharp uptick in the burn rate also suggests that SHIB holders are actively working to diminish the total supply, which is typically seen as a positive factor for the coin’s value.

Whale Accumulation Rises As SHIB Volatility Eases

Whale accumulation has seen a significant increase, with the netflow of large SHIB holders soaring by over 6,050% in the last seven days. This level of accumulation, supported by a 3,077% rise in netflows over the past month, indicates that long-term investors are showing increasing confidence in the asset.

Historically, such large inflows from whales often signal the beginning of substantial price movements. When whales accumulate, it typically points to a belief that the price will rise in the future, especially when technical indicators support a bullish outlook.

Source: IntoTheBlock

At the same time, SHIB’s price volatility has dropped to 69.20%, the lowest in the past 30 days. This is a notable decrease from the previous volatility peak of 84.62% recorded at the end of April.

The decline in volatility could indicate a phase of market stabilization, which often sets the stage for significant price movements. Over the years, periods of low volatility during consolidation phases have historically preceded breakout rallies.

Traders Show Increased Confidence

In the derivatives market, trading volume for SHIB has climbed by 27.30%, reaching a total of $122.26 million. Meanwhile, Open Interest has risen by 11.84%, bringing it to $174.12 million. These increases suggest growing speculative interest and active participation in the market, which often signals that traders expect higher volatility and price movements in the near future.

Furthermore, SHIB’s exchange reserves have dropped by 6.57%, while net outflows have spiked by over 1,558%. This indicates that whales are moving SHIB tokens off exchanges and into cold storage, which usually suggests that the holders have a long-term view of their investment.

The combination of these movements points to reduced selling pressure and a stronger belief in the future potential of SHIB.

Short Squeezes Contribute To Bullish Pressure

The OKX liquidation heatmap has revealed significant short liquidations as SHIB’s price has surged beyond key resistance levels. These forced liquidations add upward pressure to the price, as traders are forced to buy back positions to cover their losses. The resulting buybacks help fuel momentum-driven rallies, providing additional support for SHIB’s price.

The clustering of short liquidations around the $0.0000132 and $0.0000138 levels further suggests that bears are being squeezed. This creates a favorable environment for bulls, allowing them to drive prices higher with less opposition from short sellers.

Source: CoinGlass

Recently, SHIB broke out from a descending wedge pattern, then retested a crucial support zone around $0.00001271. Since then, it has been consolidating within a range between $0.00001271 and $0.00001600, forming a bullish rectangle. At the time of writing, SHIB is trading at $0.00001351, reflecting a 5.37% increase for the day.

This successful breakout and subsequent stable consolidation suggest a healthy price structure. If volume and sentiment remain strong, SHIB may be poised for a renewed rally in the coming days.

Is SHIB Preparing For A Major Breakout?

The increasing on-chain accumulation, rising derivatives activity, declining volatility, and short squeezes all point to growing bullish momentum for SHIB. If the price manages to break through the $0.00001600 level with strong volume, the next target could be the $0.00002400 zone.

Given the current market conditions, it seems that SHIB is on the verge of escaping its consolidation phase and potentially igniting the next leg of its rally. With whales accumulating, volatility decreasing, and bullish signals stacking up, SHIB appears to be setting the stage for a breakout.

Traders and investors alike are keeping a close eye on these developments, hoping that the current momentum will carry SHIB to new highs.