Shiba Inu Price Analysis: Will the Rising Burn Rate Push SHIB Higher?

Shiba Inu (SHIB) has recently seen a dramatic spike in its burn rate, with over 10,700% increase in the last few days and more than 9.5 million SHIB tokens permanently removed from circulation. This rise is part of a broader strategy by the SHIB community to create deflationary pressure and gradually drive up the token’s price through reduced supply.

However, the price of SHIB has remained relatively flat, hovering near a key resistance zone. While some technical indicators suggest a potential upward trend, the market remains cautious due to macro sentiment and lack of institutional engagement. So, is the burn rate surge enough to push SHIB higher?

SHIB Burn Rate Jumps 10,700% – What Does It Mean?

A major factor behind the current excitement in the SHIB community is the burn of more than 9.5 million tokens in just a few days. These burns are coordinated through the Shibarium layer-2 network and community-led wallets that permanently remove tokens from circulation.

Platforms like Shibburn.com track these transactions, showcasing a sustained effort to enhance tokenomics by decreasing supply. A single-day burn of over 521 million SHIB highlights how active the burn strategy has become. While historically token burns can add long-term value, their immediate impact on price often depends on broader market conditions.

Read more: Shiba Inu's Burn Rate Increases Significantly

Shiba Inu Price Stalls Despite Burn Surge

Despite the aggressive burn rate, SHIB’s price action has remained largely stagnant. It continues to hover around $0.0000118–$0.0000119, unable to break through this resistance zone since early June.

From a technical standpoint, indicators are showing some bullish signals. The Relative Strength Index (RSI) is rising from oversold levels, and there is a bullish divergence on the MACD, both of which could suggest an incoming reversal. However, 88% of current SHIB holders are still “out of the money,” which may discourage further buying pressure in the short term.

Technical Outlook and Resistance Ahead

A critical resistance lies at the 26-day EMA (~$0.0000119). If SHIB can decisively break this level, it may open the door to medium-term targets like $0.000015, especially if technical momentum builds.

For now, the market outlook remains neutral-to-cautious. Analysts point to a potential 5% price increase if SHIB can maintain volume and break the resistance level. But without institutional interest or increased whale activity, the token may continue trading sideways despite deflationary mechanics.

Read more: Can SHIB Go Up Again

Retail-Driven Burns: Can They Move the Market?

Unlike other large-cap crypto projects, SHIB’s token burn strategy is mostly retail-driven, not backed by major institutional players. While passionate, this community-led model has limitations in terms of market-moving power unless it is paired with strong demand and bullish catalysts.

Nonetheless, the consistent burning of SHIB is a testament to community commitment and may strengthen the long-term value narrative. As more users engage with Shibarium and its ecosystem, the burn rate could serve as a slow but steady driver of reduced supply.

Conclusion

Shiba Inu’s burn rate surge has created optimism among long-term holders, reinforcing its deflationary strategy. However, price movement remains limited, with SHIB unable to break above a key resistance zone. For significant upside to occur, the project needs a combination of technical breakout, renewed investor interest, and sustained ecosystem development. Until then, the high burn rate adds support—but not immediate upward pressure.

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FAQ

Why is Shiba Inu’s burn rate rising?

The burn rate is increasing due to community-led initiatives and the use of the Shibarium layer-2 network to permanently remove tokens from circulation and reduce supply.

Will a higher burn rate increase SHIB’s price?

In theory, yes—lower supply can lead to higher prices. But in practice, price impact also depends on demand, trading volume, and broader market sentiment.

What is SHIB’s key resistance level right now?

The current key resistance is around $0.0000119, which aligns with the 26-day EMA. Breaking this level is critical for a potential uptrend.

How much SHIB has been burned recently?

More than 9.5 million SHIB were burned in a short span, with individual days seeing burns as high as 521 million SHIB.

Is Shiba Inu a good investment now?

SHIB’s long-term potential depends on ecosystem growth and deflationary mechanics. However, with most holders at a loss and uncertain short-term momentum, it remains a speculative asset.