Crypto News: Shiba Inu Burn Rate Spikes 1,361% — Can SHIB Break $0.00001411 and Sustain the Rally?

An incredible 1,361% increase in Shiba Inu’s [SHIB] 24-hour burn rate caused a stir in the community. Even if the SHIB price fell by over 4% to $0.00001309, on-chain measures show a surge in renewed activity.. New and active wallet addresses spiked over 22%, indicating fresh user engagement and potential buildup toward a bullish move. However, with market liquidity thinning and whales staying cautious, the sustainability of this rally remains in question. Is SHIB primed for a trend reversal, or is this just another fleeting moment in the meme coin cycle?

Burn Rate Surge and Wallet Activity Signal User Revival

Shiba Inu’s latest metrics suggest a wave of grassroots engagement driving the token’s momentum. On-chain data from IntoTheBlock reveals that newrose by 22.10% and active addresses climbed 23.07% over the past week. Even zero-balance wallets, typically representing reactivated users or new entrants, spiked 31.41%. This pattern hints at fresh inflows and a potential shift in sentiment from SHIB’s community. Historically, such address activity increases have preceded volatility, especially when paired with social buzz. However, this rise could fizzle without institutional backing or whale inflows unless broader market conditions align in SHIB’s favor.

Chart 1- Addresses Stats, published on IntoTheBlock, April 25, 2025.

Key Resistance at $0.00001411 Could Make or Break SHIB Price Rally

SHIB is currently shaping a bullish cup-and-handle formation, a classic pattern that often precedes upward continuation. The neckline resistance sits at $0.00001411, and a breakout above this level could push the Shiba Inu price toward the $0.00001709 target. But for this rally to hold, strong trading volume and sustained momentum are critical. On the flip side, SHIB faces a key price support at $0.00001051; losing this level could invalidate the pattern and spark a downward move. 

Chart 2- SHIB/USDT price, provided by ChamiCrypto78, published on TradingView, April 24, 2025

A mixed picture is provided by the TradingView data: a 0.12% decline in exchange reserves suggests accumulation. But a drop of 157.97% in netflows indicates a rise in deposits, which frequently comes before sell pressure.. This divergence reflects a split in trader sentiment, while some prepare for upside, others seem poised to exit. The pattern may look bullish on the chart, but SHIB price remains at the mercy of broader market flows and retail confidence. Caution is advised amid heightened volatility and conflicting signals.

Longs Dominate SHIB Market, Raising Risk of Sharp Reversal

Liquidation data shows a dangerous tilt toward over-enthusiasm. Long positions worth nearly $499K were wiped out in the past 24 hours, while shorts totaled just $12K, revealing an aggressive bullish bias in the derivatives market. While this points to optimism, such an imbalance often precedes violent reversals if momentum stalls. SHIB bullish trend must break resistance with conviction to validate these long bets; otherwise, traders could face cascading liquidations. With market sentiment swinging rapidly, maintaining price stability above key SHIB price support is essential to preserve bullish momentum and prevent another meme coin-style whiplash.

What’s Next: Can SHIB Sustain Its Bullish Momentum or Fade Out Again?

For Shiba Inu price to cement its SHIB bullish trend, it must break above $0.00001411 with strong buying volume and sustained wallet growth. The spike in burn rate and user activity is encouraging, but exchange netflows and long liquidations suggest underlying fragility. Investors should monitor whale actions and macro market shifts closely. Holding the SHIB price support at $0.00001051 will be key to avoiding a reversal. Until then, cautious optimism remains the most strategic stance in navigating the volatile terrain of meme coin investments.