SHIB just broke out of a weeks-long downtrend, thanks to a surge in its burn rate and growing investor interest around new developments in its ecosystem.
Shiba Inu (SHIB) rallied 10% to an intraday high of $0.00001485 on March 26, with its market cap seated at $8.6 billion, flipping major players like Sui (SUI) and Hedera (HBAR) while rising to become the 19th largest crypto asset per data from CoinGecko.
Three catalysts are driving SHIB’s gains today.
First, the Shiba Inu team has teased Shib Finance, a major DeFi upgrade that will introduce a suite of financial tools, including reputation-based lending and undercollateralized borrowing. The upcoming platform aims to merge TradFi and DeFi with ecosystem features like Karma Engine, Shib Attestation, and a privacy-focused identity layer.
Second, SHIB got listed on BingX Futures, opening the doors for over 10 million global users to trade the memecoin with leverage.
Third, its burn rate has surged recently. On March 23, Shiba Inu’s daily burn rate increased by nearly 8,100%, reaching over 1 billion SHIB tokens in a single day. According to Shibburn, the network has burned more than 410.74 trillion tokens since its inception, leaving the circulating supply at around 589 trillion.
On-chain metrics for SHIB are also showing signs of a growing bullish sentiment. The daily active addresses on the network have jumped over 20% since March 18 per Santiment data.
Meanwhile, social sentiment around the token has also flipped positive, especially after U.S. President Donald Trump re-ignited interest in meme coins with a Truth Social post about the official Trump memecoin, TRUMP.
SHIB price analysis
On the daily chart, SHIB recently broke out of a falling wedge pattern that had been forming over the past four months, a classic bullish setup. This kind of breakout often signals a potential trend reversal, suggesting that SHIB might be gearing up for a stronger move to the upside.
Over the short term, SHIB could be eyeing a 20% move after breaking through a key resistance and completing a textbook inverse head-and-shoulders pattern. As highlighted by pseudonymous trader Satori, this breakout confirms a bottoming structure, opening the door for further upside momentum if bullish volume holds up.
SHIB price has moved above the 25 and 50-day moving averages, which represent the first major signs of a reversal since February’s downtrend.
The price bottomed out near $0.0000123, which is now acting as strong support. With SHIB climbing past those short-term moving averages, it looks ready to take aim at the 75-day EMA, which is around $0.00001575.
The Money Flow Index is also rising but still hasn’t hit the overbought zone. The MFI tracks buying and selling pressure, and with it heading up, it looks like buying pressure is overpowering the bears, which could help push SHIB even higher as long as the uptrend stays intact.
Derivatives data also supports the bullish momentum. Open interest has climbed over 26% to $160 million, indicating a rise in capital flowing into SHIB futures markets. At the same time, its OI-weighted funding rate has turned positive.
Given these positive signs, SHIB’s next potential target appears to be $0.00002485, which is around 65.7% above the current price level of $0.000015 and also marks its yearly high-to-date.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
