Shiba Inu (SHIB), the popular meme coin that has captured the crypto community’s attention, could be setting up for a major breakout. The digital asset has recently witnessed an impressive 984% surge in its token burn rate, which could be a sign of stronger price movements ahead. Coupled with bullish technical indicators and growing investor interest, there’s growing speculation that SHIB may be on the verge of a 70% price rally.

What’s Behind SHIB’s Huge Burn Rate Jump?

Shiba Inu’s burn rate has surged dramatically over the past 24 hours, with nearly a 984% increase in the number of tokens being destroyed. Token burning is a deflationary strategy that reduces the overall supply of a cryptocurrency, which in turn can lead to upward price pressure if demand stays steady or increases. This recent surge in burn activity is one of the largest seen in recent times and signals a growing commitment by the SHIB community to shrink its circulating supply.

As SHIB’s supply decreases, bullish price action becomes more likely, especially in a market where demand is beginning to pick up. At the time of writing, SHIB is trading at $0.00001229, showing a modest increase of 2.28%. While the price movement may seem small, the increase in burn rate suggests that stronger moves could follow, especially if the current trend persists.

SHIB’s Bullish Technical Setup

The technical outlook for SHIB is also looking promising. Recently, the coin broke free from a long-standing descending trendline, which has often acted as a resistance barrier. Following this breakout, SHIB successfully retested this level, confirming it as new support. This pattern aligns with the formation of a “cup and handle”, a classic bullish pattern that often signals the beginning of a strong rally.

If this pattern continues to play out, SHIB could be looking at a price target of $0.00002096, which represents a 70% price surge from current levels. The cup and handle structure typically shows shrinking volatility, which means that once SHIB surpasses resistance at $0.00001548, the price could quickly gain momentum and push higher.

Whale Activity and Exchange Outflows Signal Bullish Trends

On-chain data provides more evidence of a potential SHIB rally. Over the past 24 hours, 54.5 billion SHIB tokens have been withdrawn from exchanges, representing a -17.1% change in exchange netflow. This suggests that investors are moving their SHIB tokens off exchanges, likely to hold them in wallets for the long term rather than selling. This behavior is often indicative of accumulation before a price rise, as investors prepare for an expected rally.

The withdrawal of SHIB tokens also reduces the selling pressure on exchanges, making it easier for the price to rise. This shift in investor behavior, combined with the burn rate surge, is painting a bullish picture for SHIB in the short to medium term.

Sentiment and Liquidation Data: A Contrarian Indicator

Despite the strong technical and on-chain signals, market sentiment towards SHIB remains slightly negative. According to Santiment, SHIB’s weighted sentiment is currently at -0.189, indicating a level of skepticism in the market. However, historically, negative sentiment during bullish setups has often acted as a contrarian indicator, meaning that the prevailing pessimism could fuel an even stronger rally as traders begin to realize the strength of the underlying market conditions.

Additionally, short positions have been liquidated as SHIB’s price pushes higher. This trend, coupled with the absence of significant resistance above current levels, could lead to further upward momentum for SHIB.

Conclusion: Is SHIB Ready for a 70% Surge?

All signs are pointing towards a potential rally for Shiba Inu. The combination of a significant burn rate increase, a bullish technical pattern, and positive on-chain data suggests that SHIB could be on the cusp of a breakout. If SHIB manages to maintain its momentum and break through key resistance levels, a 70% price surge could be just around the corner.

As always, investors should proceed with caution, but the current indicators are certainly leaning in favor of the bulls.