SHIB jumps 6%, eyes $0.000006 target as burn rate flatlines

Resistance Levels and Price Outlook

The recent rally has brought SHIB close to an important technical barrier. The coin is now approaching resistance in the $0.0000055 to $0.0000056 zone, which has previously limited upward momentum. If SHIB can push past this level, traders may shift their focus to the $0.000006 mark, a price not seen as the coin trended downward in recent sessions.

A sustained move from $0.0000054 to $0.000006 would represent an additional rise of roughly 11%. However, this requires SHIB to convincingly overcome the resistance that has capped price advances in previous attempts. Market observers note that failing to hold above $0.0000052 may increase the risk of returning to $0.0000050, weakening any near-term bullish case.

Burn Rate Stalls Despite Price Rebound

SHIB’s advance has occurred against an unusual backdrop. Despite the positive price action, one of the coin’s signature scarcity narratives—its token burn rate—has temporarily stalled. Shibburn, a popular Shiba Inu token tracker, recently recorded zero SHIB transactions sent to burn addresses within a 24-hour period. This brought the daily burn rate to a complete halt, reflecting a 100% decline compared to the previous day. Burn activity on both weekly and monthly timeframes also remained subdued relative to the token’s vast circulating supply.

The burn mechanism is often considered a potential long-term supply constraint for Shiba Inu. Yet the disconnection between a stalled burn rate and SHIB’s price rally suggests that other factors are currently fueling the interest in the token.

Mini dictionary: Shibburn, an independent tracking platform that monitors Shiba Inu token burns, provides regular updates on tokens sent to non-recoverable addresses, helping assess the pace of supply reduction.

Despite weak burn activity, SHIB has managed a strong short-term recovery, drawing attention to broader market factors and heightened trading demand as drivers of its rally.

Derivatives Activity and Future Moves

Recent action in SHIB-related derivatives markets further highlights market sentiment. More than $60 million in SHIB futures positions remain open after a wave of liquidations, according to market data. Trading volumes in SHIB futures have also surged during the latest price rebound, reflecting increased speculation and interest among traders.

Large speculative positioning in derivatives may amplify the token’s next move, either reinforcing an upward breakout or exacerbating volatility in case of a reversal.

SHIB’s ability to hold key support levels and overcome resistance will likely determine whether it can retest higher ranges like $0.000006 in the coming sessions.