The Shiba Inu (SHIB) token has experienced a significant increase in its burn rate, surging by over 100,000% in the past 24 hours, with more than 112 million SHIB tokens removed from circulation recently. This deflationary activity coincides with heightened trading volumes, which have risen by approximately 72%. Despite a 7.1% price decline triggered by geopolitical tensions and broader market reactions, the substantial token burn could contribute to reducing SHIB's circulating supply and potentially cushion further price drops.
Additionally, SHIB has seen notable exchange outflows totaling 25.19 billion tokens, indicating strong accumulation by investors shifting holdings to self-custody. The token remains within a descending channel but is approaching key support levels around $0.00001050, where a bounce could lead to a retest of the 200-day exponential moving average near $0.00001546. A close above this level with volume validation may signal a potential breakout and reversal of SHIB's recent downtrend.
Market indicators like reduced volatility, now the lowest in 30 days at 64.55%, and concentrated short liquidation zones between $0.0000132 and $0.0000140 could facilitate a dynamic price surge if resistance is broken. These technical and on-chain developments collectively support a cautiously optimistic outlook for SHIB, though achieving a $1 valuation remains highly improbable in the near term.