Shiba Inu (SHIB) has experienced a remarkable 3,273% surge in its 24-hour burn rate, leading to the destruction of over 28.5 million tokens. This dramatic spike in burn activity has captured the attention of investors and traders alike, fostering a bullish sentiment as SHIB’s price hovers near resistance levels. At the time of writing, SHIB is trading at $0.00001218, marking a 1.40% increase over the past 24 hours. The uptick in the burn rate coincides with efforts by SHIB to recover from an extended consolidation period, and the growing network activity and speculative interest suggest potential momentum building under the surface.

Historically, significant increases in token burns have often preceded price movements, particularly when paired with rising address activity and speculative trading. With this recent surge in burn activity, many traders are eyeing a breakout, expecting SHIB’s price to potentially make a move upward if certain key levels are broken. However, there are still hurdles to overcome before a full-fledged trend reversal can be confirmed.

Rising Network Activity

On-chain data indicates that Shiba Inu’s ecosystem is seeing increased engagement. Active addresses have risen by 5.74% over the past week, signaling more user participation. Additionally, zero-balance addresses (ZBAs) jumped by 31.11%, which typically suggests token transfers, wallet consolidations, or burn activity. This increase in ZBAs indicates internal network rebalancing, which can be a precursor to further price action.

While the growth in new addresses was slightly down by 8.57%, the rise in network churn signals that SHIB’s ecosystem is active and in flux. These shifts suggest that the network may be preparing for a broader market response, rather than showing signs of retreat. The growing volume of transactions on the network is a positive indicator for SHIB, highlighting increased user interest and participation.

Price Action and Resistance Levels

Despite the surge in burn activity, SHIB’s price remains constrained within a narrow range between $0.00001106 and $0.00001290. At the moment, SHIB is testing support near the mid-Bollinger Band at $0.00001198, with near-term resistance at $0.00001262. For a confirmed upward move, SHIB must break above the $0.00001290 resistance level, which could open the door for further gains, potentially leading to a rally toward the $0.00001428 supply zone.

If SHIB fails to breach this resistance, the price may remain range-bound for the time being. However, bulls have been defending the key demand zone between $0.00001100 and $0.00001110, maintaining the market structure despite a period of low volatility. This suggests that there is still upward potential if the price manages to break out from its current range.

Speculative Sentiment and Market Dynamics

Open Interest in SHIB has seen a rise of 7.05%, reaching $125.57 million, indicating a growing speculative appetite. The Long/Short Ratio stands at 1.17, with 54.06% of traders holding long positions. This reflects a cautious but optimistic outlook, with traders positioning themselves for a potential breakout while being mindful of the short-term resistance levels ahead.

The combination of rising Open Interest and tightening price structure often signals that an impulsive move may be on the horizon. As SHIB’s price approaches critical levels, traders are positioning themselves for an upward breakout, though they remain cautious due to the resistance ahead.

Looking Ahead for SHIB

While the recent burn surge, growing network participation, and rising speculative interest point to potential upward momentum, SHIB’s price remains range-bound for now. The key to confirming a trend reversal lies in breaking above the $0.00001290 resistance level. If the bulls manage to flip this resistance into support, SHIB could experience a rally toward the next key resistance levels.

Until that breakout occurs, SHIB remains in a watch zone, primed for volatility and awaiting further confirmation. Traders are closely watching for price action to determine if the momentum from the recent burn surge can lead to a sustainable rally or if resistance will hold and push the price back into consolidation.