Shiba Inu (SHIB) continues to display resilience in the face of market volatility, maintaining a bullish technical structure despite a 3.18% dip on June 27, 2025. Trading at $0.0000112, SHIB has successfully defended the critical psychological support level of $0.00001. With growing on-chain activity and a burn rate surge of over 12,000% in just 24 hours, speculation is mounting: could an 18% rally be on the horizon?
Bull Flag Pattern Hints at 18% Upside for SHIB
A compelling technical formation is emerging on the four-hour chart: a bull flag pattern. This structure typically follows a strong upward move, followed by a brief consolidation phase—exactly what SHIB has displayed after ending its seven-week downtrend.
👉 Discover how technical patterns like bull flags can signal powerful breakout opportunities.
When confirmed, bull flag patterns often precede a resumption of the prior uptrend. For Shiba Inu, a breakout from this pattern could push the price to $0.0000138—a gain of approximately 18% from current levels. This would mark the highest monthly price point for SHIB in recent weeks.
However, the path upward isn't without resistance. Key levels stand in the way:
- $0.0000113: The 50-day Simple Moving Average (SMA), a crucial indicator of short-term momentum. A close above this level would confirm bullish sentiment.
- $0.00001252: The 20-day SMA, which has historically acted as resistance. Past price action shows that breaking above this threshold often leads to further gains.
- $0.000019: The upper boundary of the bull flag. Clearing this level would validate the pattern and likely accelerate buying pressure.
While the setup is promising, traders should remain cautious. The Relative Strength Index (RSI) currently sits at 44, indicating that bearish momentum still holds influence. Until the RSI crosses above 50, the bullish case remains unconfirmed.
SHIB Burn Rate Soars by 12,833% – What It Means
One of the most striking developments in the Shiba Inu ecosystem is the explosive growth in token burns. According to data from Shibburn, the SHIB burn rate surged by 12,833% within 24 hours, with over 13 million tokens removed from circulation.
Over the past seven days, the total number of burned SHIB tokens has reached 75 million. This aggressive reduction in supply is a classic bullish signal—it increases scarcity, which can drive demand if network activity remains strong.
But the burn spike isn’t happening in isolation. It coincides with a 27% increase in daily active addresses, rising from 2,777 to 3,534 within a single day (per Santiment). This suggests growing user engagement and on-chain activity—both positive signs for long-term price sustainability.
👉 Explore how token burns and supply dynamics influence crypto valuations.
Moreover, the Shibarium Layer-2 network has seen its Total Value Locked (TVL) climb from $1.77 million to $1.96 million recently. This growth likely contributes to increased transaction volume and, consequently, higher burn rates—since every transaction on Shibarium incurs a SHIB fee that’s partially burned.
Together, these metrics paint a picture of a revitalizing ecosystem. Increased burns, rising user engagement, and expanding DeFi activity on Shibarium could collectively fuel a sustained recovery for SHIB.
Key Factors Influencing SHIB’s Price Recovery
Several interconnected elements are shaping Shiba Inu’s current market outlook:
1. Supply Shock Dynamics
With millions of tokens being burned daily, the circulating supply of SHIB is shrinking faster than usual. If demand remains steady or increases, this imbalance could trigger upward price pressure.
2. Network Activity Surge
Higher daily active addresses indicate real usage—not just speculative trading. This strengthens the narrative that SHIB is evolving beyond a meme coin into a functional ecosystem.
3. Shibarium Adoption
As more projects build on Shibarium and users migrate for lower fees and faster transactions, transaction volumes—and burns—are likely to keep climbing.
4. Market Sentiment
Despite broader crypto market weakness—with Bitcoin and Ethereum both in correction phases—SHIB’s ability to hold key support levels reflects strong holder conviction.
Frequently Asked Questions (FAQs)
Q: Why is Shiba Inu price dropping despite high burn rates?
A: While burn rates are bullish, short-term price movements are influenced by broader market sentiment. Bitcoin’s downturn and macroeconomic uncertainty are currently weighing on most altcoins, including SHIB.
Q: How does the SHIB burn rate affect price?
A: A higher burn rate reduces token supply over time, creating scarcity. If demand stays constant or grows, this can lead to price appreciation—a fundamental driver in tokenomics.
Q: What does the bull flag pattern mean for SHIB traders?
A: The bull flag suggests consolidation before a potential breakout. Traders watch for a close above $0.00001252 (20-day SMA) as early confirmation of an impending rally.
Q: Can SHIB reach $0.0000138 in the near term?
A: Yes—if the bull flag pattern plays out and bears fail to reclaim control below $0.000011. Volume and RSI movement will be key confirmation tools.
Q: Is Shibarium contributing to SHIB’s price momentum?
A: Indirectly, yes. Growth in TVL and transaction activity on Shibarium increases burn volume and signals ecosystem health, both of which support positive market perception.
Q: What happens if SHIB fails to break $0.00001252?
A: Failure to breach this resistance could lead to extended consolidation or a retest of support near $0.00001. Traders should monitor volume and on-chain metrics closely.
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Final Outlook: Will SHIB Deliver an 18% Rally?
The confluence of technical structure, supply reduction, and rising network activity makes a strong case for optimism around Shiba Inu’s short-term trajectory. The 18% rally target to $0.0000138 is not just speculative—it’s technically grounded and supported by fundamental improvements in the ecosystem.
However, confirmation is key. Until SHIB sustains a close above the 50-day SMA and pushes past $0.00001252 with strong volume, the bullish scenario remains at risk.
For investors, this moment offers a strategic entry point—provided they monitor RSI trends, burn data, and Shibarium’s growth metrics closely.
With tokenomics tightening and user engagement climbing, Shiba Inu may be transitioning from meme-driven volatility to sustainable momentum.
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