SHIB Burn Rate Explodes 1,680% — Is a Price Surge Next?

SHIB burn rate soared 1,680%, pushing circulation lower and signaling stronger deflationary pressure.

Smart money investors increased holdings by 62%, showing confidence in Shiba Inu’s upside.

Technical indicators suggest bullish momentum with resistance near $0.00001585 as the next target.

Shiba Inu has shown sparks of life this month, climbing nearly 10% from its lowest level. The token also trades 30% above its yearly low, signaling resilience. Fueling this rebound is a sudden surge in the burn rate, which spiked 1,680% on Monday. Investors are asking the big question: can this spark a stronger rally? The mix of rising burn numbers, smart money accumulation, and falling exchange reserves has caught traders’ attention.

Burn Rate Surge and Investor Activity

On Monday, 1.24 million SHIB tokens were burned, worth about $15 million. While the percentage jump sounds explosive, the dollar value remains modest compared to Shiba Inu’s $7.2 billion valuation. Still, the steady pace of token burning continues to reduce supply. Over 410 trillion SHIB have already been destroyed, leaving 584.6 trillion circulating. Deflation, even in small doses, creates a stronger foundation for long-term price growth.

Smart money has taken notice. These investors have boosted their SHIB holdings by 62% in 30 days. Their total now stands at 9.89 billion tokens. Such accumulation often signals confidence in near-term price movement. At the same time, exchange reserves have fallen to their lowest since June, now sitting at 278 trillion. Lower reserves suggest fewer coins available for selling, reducing downside pressure. This combination of shrinking supply and accumulation paints a cautiously bullish picture.

Technical Signals Point to Breakout Potential

Price charts reveal encouraging signs. SHIB trades slightly above the 50-day exponential moving average, showing renewed strength. A breakout above a symmetrical triangle pattern has added fuel to bullish sentiment. The Relative Strength Index has climbed past 50, tipping momentum in favor of buyers. Other indicators confirm the trend. A double-bottom formed near $0.00001020, a classic bullish reversal pattern.

The MACD lines have also crossed upward, signaling fresh momentum. Together, these patterns suggest buyers are regaining control. The next major test sits at $0.00001585, the July 21 peak. A move toward this level would represent a 23% gain from current prices. Bulls must hold support above $0.000010 to avoid invalidating the breakout. For now, the balance leans toward further gains.

Market psychology is shifting, and the burn narrative adds energy to the charts. Shiba Inu’s burn rate explosion has energized the community and reduced circulating supply. Smart money accumulation and falling exchange reserves strengthen the case for higher prices.

Technical indicators confirm growing momentum, with resistance at $0.00001585 now in focus. While risks remain, SHIB appears primed for another push upward. For traders seeking opportunity, the mix of deflationary action and technical strength makes Shiba Inu worth watching closely.