Shiba Inu (SHIB) has captured the crypto spotlight after a dramatic 103,222% spike in its token burn rate, with over 102 million SHIB removed from circulation in just 24 hours. This aggressive reduction in supply comes at a time when the broader crypto market is sending mixed signals, and SHIB’s price has dipped by more than 3% in the last day. However, these deflationary moves, combined with notable on-chain activity, could set the stage for a significant price shift 2 3.
Key On-Chain Signals: Accumulation and Outflows
Recent data shows a net outflow of 25.19 billion SHIB from exchanges, representing a 144.3% drop in supply held on trading platforms. This trend suggests that investors are moving their tokens to self-custody, a classic sign of accumulation and long-term confidence in the asset. Historically, such outflows have preceded periods of upward price momentum, as reduced exchange supply can limit sell-side pressure 2.
Technical Picture: Testing the Channel’s Upper Bound
SHIB continues to trade within a well-defined descending channel. Despite a series of lower highs, the token recently bounced from a demand zone between $0.0000100 and $0.0000120, indicating strong buyer interest at these levels. If SHIB manages to close above the channel’s upper boundary with convincing trading volume, it could signal a breakout and a potential reversal of the current downtrend 2 3.
Volatility Compression: Calm Before the Storm?
Volatility for SHIB has dropped to 64.55%, its lowest in the past month. Such periods of low volatility often precede sharp price movements, as the market “coils” before a breakout. The last time SHIB saw similar volatility compression, it was followed by a notable price surge. This setup could offer an entry point for bullish traders if the price breaks above nearby resistance 2.
Short Liquidations: The $0.0000132–$0.0000140 Zone
According to liquidation heatmaps, there is a dense cluster of short positions between $0.0000132 and $0.0000140. If SHIB’s price pushes above this range, it could trigger a wave of short liquidations, forcing traders to buy back their positions and potentially accelerating upward momentum. This makes the $0.0000132 level a critical resistance to watch in the coming sessions 2.
Outlook: Breakout or More Sideways Action?
With aggressive token burns, significant exchange outflows, and compressed volatility, SHIB is at a technical crossroads. If bulls can push the price above $0.0000132, a rapid rally could follow, fueled by short liquidations and renewed speculative interest. However, failure to clear this resistance may result in continued sideways trading within the current channel 2 3.
