Shiba Inu (SHIB) Poised for Rebound as Burn Rate Climbs, Whale Accumulation Intensifies, and Supply Contracts

Shiba Inu (SHIB) is showing promising signs of a potential price rebound as it consolidates around critical support levels. Key factors driving market optimism include a massive spike in SHIB’s burn rate, increasing whale accumulation, and a notable decrease in exchange reserves, all of which contribute to a tightening circulating supply.

Burn Rate Soars Over 10,000%, Signaling Strong Community Engagement

SHIB’s burn mechanism has experienced a dramatic surge in activity, marking a pivotal moment for the Shiba Inu ecosystem. According to data from Shibburn, the token’s burn rate skyrocketed by over 10,000% within a single 24-hour period on October 26. A total of 7,069,829 tokens were permanently removed from circulation, significantly reducing the supply. Of particular interest, one user conducted three separate transactions, collectively sending 6 million SHIB to a designated burn address.

The cumulative quantity of burned tokens now exceeds 410 trillion, underscoring sustained community efforts to deflate SHIB’s circulating supply. As of now, roughly 584 trillion tokens remain in circulation, substantially less than the initial supply, which bolsters long-term prospects for price growth.

Whale Accumulation and Declining Exchange Holdings Signal Bullish Sentiment

The accumulation of SHIB by cryptocurrency whales has reached an impressive level, sparking renewed interest in the token’s favorable outlook. Large investors have significantly expanded their positions, with whale holdings surging from 28 billion tokens earlier this month to a staggering 89 billion. Similarly, “smart money” investors—accounts known for strategic and calculated market moves—have increased their SHIB holdings by 105% over the past 30 days, collectively controlling over 12.4 billion tokens.

Simultaneously, SHIB reserves on centralized exchanges have markedly declined. Since July, the number of tokens held on exchanges has dropped from 297 trillion to approximately 283 trillion. This contraction signals reduced sell-side pressure, as fewer tokens remain readily available for liquidation. Both whale accumulation and declining exchange reserves point to stronger confidence among large-scale investors, an essential factor for fostering price stability and upward momentum.

Technical Analysis Highlights Key Rebound Potential — But Caution Remains

SHIB’s price charts reveal a critical technical setup indicative of potential market movement. On the daily timeframe, the token is consolidating around fundamental support levels, forming the lower boundary of a symmetrical triangle pattern. This chart pattern typically suggests the likelihood of a breakout, whether upward or downward, as price volatility compresses.

Technical analysts remain cautiously optimistic, noting that while symmetrical triangles historically precede breakouts, there is a risk of “false breakouts,” where prices fail to sustain upward trends after initial momentum. Despite these short-term uncertainties, experts assert that the reduction in circulating supply fueled by the recent burn rate surge, alongside whale accumulation, could act as a strong catalyst for recovery.

Should SHIB initiate a rally from its current support levels, its next challenge may be overcoming the critical resistance point at $0.00001477—the peak price recorded on October 14. Breaching this level could pave the way for further bullish price action.

Current Market Metrics

As of October 27 at 9:45 a.m. KST, Shiba Inu was trading at $0.00001189 on Binance, reflecting minor fluctuations within its current consolidation zone. On South Korean exchange Upbit, the token was priced at KRW 0.0171, offering a closely aligned valuation reflective of global sentiment.

Outlook and Community Momentum

The Shiba Inu ecosystem continues to exhibit robust activity and engagement, with mechanisms such as the token burn rate and whale investments showcasing a commitment to long-term value appreciation. While technical patterns suggest an imminent breakout, traders and investors should remain aware of potential false signals. For those holding positions in SHIB, the combination of reduced circulating supply and diminished exchange reserves aligns with a narrative of increasing scarcity—a key driver of bullish sentiment.

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