Shiba Inu ($SHIB ) experienced a massive 14,575% increase in its token burn rate, leading to the removal of 279 million tokens from circulation. This event sparked optimism among traders, resulting in a 1.49% increase in SHIB’s price to $0.00001878 in the last 24 hours.

Overall network activity for Shiba Inu ( #shiba⚡ ) also saw a significant rise, with the number of active addresses growing by 37.93% to 6,391. As SHIB continues to attract more attention, market analysts warn traders to remain cautious, as volatility remains high.

Token Burn Drives SHIB Price and Network Activity

The recent SHIB token burn had a substantial impact on the coin's market performance. The removal of 279 million tokens led to a surge in positive sentiment within the SHIB community. Additionally, SHIB’s network activity increased significantly, with the number of active addresses up by 37.93%, and the number of transactions doubling to 7,083 in the last 24 hours.

SHIB trading volume also reached 2.171 trillion tokens, signaling growing market interest and increasing buying pressure. This development pushed SHIB’s price up by 3.43%, further contributing to its bullish momentum. As more tokens are burned, scarcity continues to play a key role in driving the coin’s price higher.

Technical Indicators Show Bullish Momentum

Technical indicators also point to a continuing bullish trend. The Relative Strength Index (#RSI ) reached 61.09, signaling moderate bullish momentum. Since RSI remains below the overbought threshold of 70, SHIB still has potential for further growth.

The Moving Average Convergence Divergence (MACD) indicator recently showed a bullish crossover, with the MACD line (0.00000073) sitting above the signal line (0.00000072). The MACD histogram indicates slight bullish momentum, suggesting a potential increase in buying pressure as price action progresses.

Cautious Optimism in the Derivatives Market

Data from SHIB’s derivatives market presents a mixed picture. Open interest rose by 2.39% to $57.63 million, reflecting growing interest from traders. However, trading volume declined by 6.76%, indicating a shift in market dynamics. On Binance, long positions slightly outweigh shorts with a ratio of 1.0157, while OKX shows a stronger bullish sentiment with a ratio of 2.35.

Traders should remain cautious, though, as liquidations surged, wiping out $770,000 in the last 24 hours, mostly from over-leveraged long positions. This sharp increase in liquidations underscores the ongoing volatility in the SHIB market.

Whale Activity and Long-Term Holder Confidence

Despite recent volatility, long-term holder confidence in SHIB remains strong. Approximately 53% of SHIB holders are in profit, and 79% have held their tokens for over a year, indicating that a substantial portion of the market remains confident in SHIB’s long-term potential.

Additionally, SHIB’s transaction activity remains robust, with $282.68 million in transactions over $100,000 processed in the past week. However, with 73% of SHIB’s supply concentrated in the hands of large holders (whales), the market remains vulnerable to sharp price swings caused by whale movements.

#SHIBBurns , #memecoin🚀🚀🚀

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