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The Shiba Inu ($SHIB) meme coin has climbed past a key resistance level amid a more than 370% surge in burn rate. At the moment, $SHIB is trading at $0.000006, demonstrating a moderate rally on the daily charts after breaking the current resistance zone.
370% spike in Shiba Inu burn rate
As revealed by Shibburn data, the Shiba Inu burn rate surged more than 370% over the past 24 hours. Within this period, 4,274,728 $SHIB were permanently destroyed from circulation.
The surge includes notable individual burns, such as 1,000,000 and 2,000,000 $SHIB in a single transaction within the past few hours. Meanwhile, smaller burns were in the hundreds to thousands of $SHIB.
So far, the total tokens burned is approximately 410,754,572,158,100 $SHIB, or roughly 999,982,335,599,865 $SHIB, from the initial supply.
For context, the Shiba Inu burning is a deflationary mechanism, where $SHIB tokens are permanently removed from circulation by sending them to dead wallets. This reduces the massive total supply, theoretically increasing scarcity and supporting long-term price potential if demand rises.
Note that larger jumps in the Shiba Inu burn rate are frequent in the $SHIB ecosystem. Sometimes, it is tied to community efforts, large whale transactions or Shibarium activity that burns fees.
These burns are often viewed as bullish signals. This is because they counteract the $SHIB hyper-inflated supply and can build momentum.
$SHIB breaks key resistance
Unsurprisingly, the 370% burn rate surge coincided with the $SHIB price breaking a key resistance level. In the meme coin space, price breakouts often happen alongside heightened community activity, like burns.
According to data from CoinMarketCap, $SHIB is currently trading around $0.0000059. In the past 24 hours, the $SHIB price surged 3.04%. However, the trading volume dropped 3.4% to $156.5 million.
Nonetheless, Shiba Inu broke $0.000006 in the short term. Based on technical analysis, the price is building higher lows while pressing into a descending trendline, showing steady accumulation.
In a bullish case, the price may break higher if the resistance is flipped into support. The next key level to watch is resistance near 0.0000065 and support around 0.0000058.
On the flipside, the breakout record could fail, and another pullback might follow if the price gets rejected again from this trendline.
In the past few weeks, the $SHIB price has struggled to regain balance after massive liquidity. In one instance, 15.99 billion $SHIB long positions were liquidated, while short liquidations only amounted to $11,380.