Shiba Inu Price Jumps 8% as Whale Activity and Burns Hint at 59% Rally

Shiba Inu (SHIB) is back in the spotlight as a mix of technical patterns and on-chain activity hint at a possible price surge. Shiba Inu (SHIB) has surged over 8% in the past 24 hours, now trading around $0.00001394 with a market cap above $8.2 billion, ranking it the 28th-largest cryptocurrency. 

It has seen its burn rate explode by over 48,000% alongside a massive rise in whale transactions. These factors are fueling speculation that SHIB could rally toward $0.0000254. 

The jump comes amid a broader rally in the meme coin sector, with tokens like Dogecoin (DOGE), Pepe (PEPE), Bonk (BONK), and dogwifhat (WIF) all posting strong double-digit daily gains. This sector-wide momentum has acted as a tide lifting SHIB’s price.

Double Bottom Pattern Points to a Breakout

From May until now, SHIB’s price action has formed what traders call a double bottom, a bullish chart pattern that suggests strong support. In SHIB’s case, this support sits firmly at $0.000010, a level it hasn’t broken in months. Each time the price has touched this zone, it’s bounced back sharply, only to face resistance at $0.0000159.

Why SHIB Up Today?

Meanwhile, the supply-reducing SHIB burn mechanism is heating up again. Over 87 million SHIB tokens have been sent to dead wallets in just 24 hours, driving the burn rate up by a staggering 48,000%. While this is a tiny fraction of the coin’s massive 589 trillion supply, such burn surges have often preceded price rallies.

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Big investors, or “whales,” are also stepping up their game. Whale transaction volumes jumped from 1.28 trillion SHIB to 3.69 trillion SHIB in just two days, an increase of more than 188%, according to IntoTheBlock. This spike signals growing interest from deep-pocketed players, often seen as a bullish sign.

Signs of Caution Linger Despite the Hype

While analysts and social media buzz suggest SHIB could push toward a new all-time high, on-chain metrics advise caution. Exchange netflow has turned positive over the last week, meaning more SHIB is moving onto centralized exchanges, a signal that some investors may be preparing to sell. Technical indicators also show potential overextension, with SHIB’s Relative Strength Index (RSI) above 62, approaching the overbought threshold of 70. This suggests the token might face a short-term cooldown before attempting further gains.

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