According to blockchain tracker Shibburn, the burn rate of Shiba Inu [SHIB] has surged by 5545.73% in the past 24 hours.

A total of 61,468,595 SHIB tokens were permanently removed from circulation, with a large portion of the destruction attributed to a single major transaction.

The SHIB destruction mechanism is a community-driven effort to reduce the supply of tokens and increase their scarcity.

Following the destruction event, the total market supply of SHIB is approximately 589.26 trillion tokens at press time, with the remaining supply supporting the token’s market activity.

SHIB's movements after the fire

At press time, SHIB is trading at $0.00002526, up 1.89% in the past 24 hours and 4.80% in the past week.

In the past 24 hours, SHIB has traded between $0.00002453 and $0.00002639, highlighting its continued volatility.

Despite the destruction event and the price surge, SHIB briefly attempted to break higher but fell back to its current range.

This price action suggests that burns have limited immediate impact on market dynamics, but long-term effects may depend on continued token removal efforts.

Look for bullish indicators

Notably, SHIB is about to break above the weekly Ichimoku Cloud. This could signal a strong uptrend after a long period of lackluster price action.

In the event of a breakout, analysis suggests that the Shiba Inu should overcome the immediate resistance level of $0.00003100 and could pave the way towards the $0.000037 area that has been in place since March.

Furthermore, the Shiba Inu price could also target the yearly high of $0.000045 and potentially reclaim the previous peak of 2021, setting itself up for an eventual move to a new all-time high.

Additionally, Binance recently expanded Shiba Inu’s trading options. The platform introduced spot grid trading and spot DCA (dollar cost averaging) for the SHIB/USDC pair.

Enhanced trading options allow SHIB to be more active and participate in market activities. If market conditions remain favorable, this development, combined with the ongoing destruction mechanism, can support a gradual increase in prices.

A potential rebound is coming?

The Shiba Inu memecoin appears to be preparing for a potential rally as a large number of SHIB tokens have been moved from exchanges over the past 3 days, indicating strong activity.

It is worth noting that in the past three days, Shiba Inu coin holders have withdrawn a total of 5.45 trillion tokens from exchanges, worth about $162 million, indicating that they intend to hold for the long term. If this trend continues, the price of SHIB may soon soar.

In addition, some short-term SHIB holders have not sold tokens in the past 30 days, which means that most holders still hold a large amount of assets. On the other hand, a decline in this indicator means that most people are selling, which can be bad for cryptocurrencies.

It is therefore crucial that these short-term SHIB holders maintain their positions so that the value of the token does not drop.

The surge in burn rate and new trading options paint an optimistic picture for the SHIB community and its potential for continued market activity.

SHIB is about to explode?

On the daily chart, the price of SHIB has formed a bull flag pattern, indicating a possible continuation of the uptrend. This pattern resembles a flag on a flagpole, indicating that the price is likely to break out once the consolidation phase is over. Notably, the price of SHIB seems to be following this pattern. If buying pressure increases, the value of the coin could surge to $0.000030. However, if more tokens enter exchanges, memecoin could drop to $0.000020.

The SHIB community has witnessed a massive spike in its burn rate, which has surged 23,265.28% in the past 24 hours. This unprecedented spike in burn rate has sparked optimism in the community, with many speculating that prices may rise.