What is Driving SHIB's Price Surge? Analyzing the Latest Sentiment

Shiba Inu (SHIB) recorded a 27% increase in value over the past week, outpacing several high-profile cryptocurrencies. 

While price fluctuations are common in the crypto world, this recent surge in SHIB raises an important question: what exactly is behind the growing interest and renewed momentum?

SHIB's Performance Stands Out Amid Market Noise

Shiba Inu’s upward movement comes at a time when retail investor enthusiasm is picking up, even as large holders—often referred to as whales—show a slight decline in activity. 

Over the past seven days, SHIB has outperformed not only other meme coins but also tokens that had benefited from major news exposure. 

According to Coinpedia Markets, SHIB is now trading above its key moving averages on both daily and weekly charts. The Relative Strength Index (RSI) remains strong at 71, reflecting positive momentum and signaling potential for further gains.

Crypto trader CW noted that Shiba Inu is testing a significant resistance level around $0.00002148. Should the token break through this point, the next resistance is projected near $0.0000224. 

Analysts are even more optimistic, with some forecasting a potential rally to $0.00003575—an increase of more than 120% from recent levels.

Read also: Floki Coin vs Shiba Inu: Do You Know Which One Is More Profitable?

Shibarium Adoption and Ecosystem Growth

A major factor supporting SHIB’s recent rally is the consistent growth of Shibarium, Shiba Inu’s Layer 2 blockchain network. Since March, Shibarium has shown significant on-chain activity. 

The number of registered accounts has grown from around 240,000 to nearly 269,000, while the total number of transactions has increased from 931 million to more than 1.15 billion.

This growth is not just numerical. Shibarium is being actively integrated with new tools and services. One such addition is Zypto, which aims to simplify crypto payment solutions. 

Another is Bury 2.0, an incentive mechanism that rewards users for staking their SHIB tokens. 

These integrations are adding real utility to the ecosystem, which is often a missing component in meme token communities.

The expansion of Shibarium is helping transform SHIB from a speculative asset into a more functional digital token with long-term applications.

SHIB Burn Rate Sees Massive Spike

Another reason for the positive sentiment surrounding Shiba Inu is the recent spike in its burn rate. Token burning refers to the permanent removal of tokens from circulation, which can reduce overall supply and theoretically increase value. 

According to Shibburn data, the burn rate surged by over 2,200% in the last 24 hours, with 13.69 million SHIB removed in a single transaction. Such activity can draw additional interest from traders who are seeking deflationary signals in the market.

Although the burn rate alone does not guarantee price increases, it reflects an engaged community and a focused effort to enhance the token’s value proposition.

Read also: SHIB Rises As Bullish Momentum Continues! Can the Memecoin Market Hold Steady?

Mixed On-Chain Signals Reflect a Cautious Market

Despite SHIB’s strong recent performance, not all indicators are uniformly positive. On-chain data from IntoTheBlock shows that while the number of active daily addresses has increased slightly by 0.95%, large transaction volume—defined as transfers worth more than $100,000—fell nearly 30% in a single day. The number of such transactions dropped from 161 to 115.

This decline suggests that institutional or whale interest may be cooling off, at least temporarily. However, the uptick in smaller, retail-driven transactions reflects a strong base of individual investors who remain actively involved in the SHIB ecosystem.

What Lies Ahead for Shiba Inu?

The current setup for SHIB closely resembles its breakout pattern from September 2024. Traders and analysts are watching key resistance levels closely, as breaking through them could open the door to further gains. 

At the same time, the strength of SHIB’s fundamentals—bolstered by Shibarium’s adoption, ecosystem incentives, and a steady burn mechanism—provides a more solid foundation than during previous speculative rallies.

Still, risks remain. Market sentiment can shift quickly, especially in meme-related tokens. External factors such as broader macroeconomic changes, regulatory developments, or sudden shifts in crypto trading volumes could influence SHIB’s trajectory in the near term.

FAQs

Q: What is SHIB?
A: SHIB is the native cryptocurrency of the Shiba Inu ecosystem, originally created as a meme token but now evolving into a more utility-driven asset through developments like Shibarium.

Q: Whose coin is Shiba Inu? 
A: Shiba Inu was started in August 2020 by someone who called themselves "Ryoshi." They wanted to build a strong community around a fun, meme-like cryptocurrency.

Q: What if you invested $1000 in Shiba Inu? 
A: If you invested $1000 early on, you would have gotten a huge amount of Shiba Inu coins. However, the price dropped a lot, so that $1000 investment would have become worth very little.

Q: Will Shiba Inu go up? 
A: Experts think the price of Shiba Inu could go up and down a lot in the next three years. They predict it might reach around $0.00009 or even $0.00010 at its highest.

Q: How much is Shib in USD? 
A: Right now, 1 SHIB is equal to 0.000014 USD.