SHIB Price Surges 6% with the Burn Rate Spiking Over 3,800% in a Week

Shiba Inu (SHIB) is once again making headlines as its burn rate skyrockets over 3,800% in seven days, fueling optimism among investors. This surge coincides with a broader crypto market recovery, pushing SHIB’s price up over 6% in a single day. But can this momentum drive the memecoin past $0.000018 and beyond? Here’s what you need to know.

• Shiba Inu’s burn rate surged over 550%, reducing circulating supply and boosting investor sentiment.

• SHIB price jumped over 6% in a day, driven by broader crypto market recovery and whale accumulation.

• MVRV ratio indicates SHIB is in the ‘Opportunity Zone,’ historically signaling potential rebounds.

• Despite controversy around its lead developer, SHIB’s core ecosystem (SHIB, BONE, LEASH) remains intact.

• Resistance at $0.000018 is key for SHIB’s next move, with potential upside if momentum continues.

Source: X

According to Shibburn, the leading tracker of SHIB token burns, over 1.1 billion SHIB tokens were permanently removed from circulation in the past week, marking an impressive 3829.51% increase in the burn rate. This continuous reduction in supply has long been a core part of Shiba Inu’s strategy to improve tokenomics and increase long-term value.

Last month alone, nearly 1 billion SHIB tokens were burned, further reducing the massive circulating supply, which now stands at approximately 589.25 trillion tokens. The burn mechanism, designed to create scarcity, is a key factor in fueling bullish sentiment among traders and investors.

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The broader crypto market’s recovery has played a crucial role in SHIB’s recent price movement. Bitcoin (BTC) recently touched $102,000 intraday, boosting confidence in altcoins and meme coins like SHIB. As a result, SHIB saw an 6% increase, with its price currently hovering around $0.0000152.

Additionally, large transaction volumes suggest that institutional investors and whales are accumulating SHIB amid recent market volatility. Historically, significant whale accumulation has been an early indicator of a potential price rally.

SHIB/USDT price chart | Source: KuCoin

With SHIB’s price bouncing back and investor sentiment improving, analysts predict a possible move toward $0.000018 in the short term. The token’s 24-hour low and high were $0.00001358 and $0.00001691, respectively, signaling strong upward momentum.

However, for SHIB to erase a zero and reach $0.0001, it would require a 549% rally, which remains a long-term challenge given the current market structure. Resistance levels at $0.00002, $0.000025, and $0.00003 will be critical hurdles to watch.

Key Buy Signal: MVRV Ratio in the ‘Opportunity Zone’

Shiba Inu’s 30-day Market Value to Realized Value (MVRV) ratio has plunged to -30.76%, reaching its lowest level in two years. This indicator, which tracks the average profit or loss of recent SHIB investors, suggests that the token is deep in the Opportunity Zone—a historical marker of potential price rebounds.

When MVRV falls between -15% and -30%, it signals that short-term holders are at a loss, often leading to capitulation followed by a strong recovery. If buying pressure continues to build, SHIB could see a double-digit rally in the near future.

Despite the bullish momentum, controversy looms over Shiba Inu’s ecosystem. Shytoshi Kusama, the lead developer of SHIB, is facing accusations from Shibburn, the largest burn tracker, who claims Kusama and his associates have misled the community regarding new projects.

Shibburn alleges that Kusama promoted projects under false pretenses, including SHY token on Solana, which has sparked internal disputes. While Kusama maintains that SHY is not an official Shiba Inu project, some community members remain skeptical. However, Shiba Inu’s core ecosystem—SHIB, BONE, and LEASH—remains intact, and the controversy has not significantly impacted SHIB’s price action thus far.

While SHIB erasing a zero ($0.0001) remains a long-term goal requiring substantial bullish momentum, its recent burn rate surge, whale accumulation, and market recovery suggest that short-term gains remain likely. Traders should keep an eye on key resistance levels and MVRV trends to gauge the next breakout potential.

1. Market Sentiment: The broader crypto market recovery remains a key driver for SHIB’s price action. If Bitcoin continues its upward trend, meme coins could see further gains.

2. Burn Rate Impact: Continued SHIB burns will gradually reduce supply, potentially driving long-term value appreciation.

3. Resistance Levels: SHIB must break past $0.000018 to confirm further upside potential.

4. Whale Accumulation: Large investor activity could indicate an upcoming rally, making it essential to monitor blockchain data for whale movements.

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