SHIB Price Rallies 17% as Record Token Burns Fuel Bullish Momentum

• SHIB surged 17% weekly as token burns reached the highest level in one year.
• Rising futures volume and healthy derivatives activity strengthened bullish market sentiment.
• Holding $0.0000050 could open the path toward $0.0000060 and $0.0000070.

Shiba Inu has regained strong momentum after several months of uneven trading. Buyers have returned with confidence, pushing SHIB higher during the past week. Strong token burns, rising futures activity, and improving chart patterns have strengthened market sentiment. Traders now focus on whether this rally has enough strength to continue. The next few sessions could decide whether SHIB extends gains or pauses before another attempt at higher prices.

Shiba Inu has climbed nearly 4% during the past day. Weekly gains have now exceeded 17%, placing SHIB among the strongest meme coins. Several market signals support this recovery beyond simple price action. One major driver comes from token burns. Recent data shows nearly 2.98 billion SHIB left circulation during the past seven days. That marks the largest weekly burn recorded in about one year.

Several large transactions fueled this milestone between July 26 and July 27. One transfer alone removed more than 757 million SHIB forever. Ecosystem projects, including Woofswap, also contributed additional burns. Lower circulating supply supports SHIB’s long-term deflation strategy. Strong burn activity has often improved investor confidence during bullish market phases.

Derivative data also reflects growing optimism. CoinGlass reported an 81.1% jump in SHIB futures trading volume. Daily futures volume reached roughly $141.7 million. Higher trading activity shows traders remain interested in further upside. Open interest declined slightly to $46.4 million.

Technical conditions continue improving across the daily chart. SHIB recently escaped a long descending trend after breaking above falling resistance. Current price action resembles a healthy retest instead of a bearish reversal. Buyers continue defending recent breakout levels with confidence. Trading volume remains stronger than previous weeks. Meanwhile, the Relative Strength Index stays above neutral territory.

Those signals suggest bullish momentum remains healthy despite brief consolidation. The $0.0000050 level now carries major importance. Turning that area into support would strengthen the bullish outlook. Such a move could open the path toward the 200-day EMA near $0.0000060. Broader resistance near $0.0000070 would become the next upside objective. Support also remains well defined. Strong long liquidation clusters sit between $0.0000046 and $0.0000047.

Losing that area could trigger a short-term correction toward $0.0000045. Buyers would likely attempt another recovery from that region. Shiba Inu has gained support from more than price momentum alone. Record token burns, healthier derivatives activity, and stronger technical signals continue attracting buyers. Holding above recent breakout levels remains the key challenge. Continued buying pressure could help SHIB extend recent gains during the coming weeks.