Shiba Inu (SHIB) continues to hold its ground within a bullish technical framework, despite a 3.18% dip on June 27, bringing its trading price to $0.0000112. While broader market volatility pressures persist, SHIB has successfully defended the critical psychological support level at $0.00001. With growing on-chain activity and a burn rate that has skyrocketed by over 12,000% in just 24 hours, speculation is mounting: could an 18% price surge be on the horizon?
Bull Flag Pattern Hints at Potential 18% SHIB Rally
Technical indicators suggest Shiba Inu may be gearing up for a significant upward move. After ending a seven-week downtrend, SHIB has formed a bull flag pattern on the four-hour chart—a classic continuation signal in technical analysis. This formation typically follows a strong price increase, followed by a brief consolidation period, before resuming the original uptrend.
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If the pattern holds, the projected target for SHIB is $0.0000138, representing an 18% gain from current levels. Achieving this price would mark the highest monthly value for the meme coin, reinforcing investor confidence and potentially triggering further momentum buying.
However, several resistance levels must be overcome for this bullish scenario to materialize:
- $0.0000113: The 50-day Simple Moving Average (SMA), a key indicator of short-term trend strength. A sustained close above this level would confirm bullish momentum.
- $0.00001252: The 20-day SMA, which has historically acted as strong resistance. Past data shows that decisive breaks above this zone often precede additional gains.
- $0.000019: The upper boundary of the bull flag itself. Breaking through this level would validate the pattern and could accelerate buying pressure.
Despite these promising signs, caution remains warranted. The Relative Strength Index (RSI) currently sits at 44, indicating neutral-to-bearish momentum. Until the RSI crosses above 50, the risk of continued consolidation or a pullback remains elevated.
SHIB Burn Rate Jumps 12,833% – Supply Shock in Motion?
One of the most compelling developments supporting SHIB’s potential rally is the dramatic increase in token burn activity. According to data from Shibburn, the SHIB burn rate surged by 12,833% within 24 hours, removing over 13 million tokens from circulation. Over the past week alone, more than 75 million SHIB tokens have been burned.
This aggressive reduction in supply aligns with basic economic principles: decreasing availability while demand holds steady—or increases—can exert upward pressure on price. In the context of Shiba Inu, this supply shock may be laying the foundation for a sustainable price recovery.
Beyond burning, network usage is also on the rise. Santiment data reveals a 27% increase in daily active addresses, climbing from 2,777 to 3,534 in just one day. This spike suggests growing engagement, potentially driven by new users, traders, or decentralized applications (dApps) on the Shibarium ecosystem.
Shibarium Growth Fuels On-Chain Activity
The surge in burns and user activity coincides with notable growth in Shibarium’s Total Value Locked (TVL). Over recent days, TVL has climbed from $1.77 million to $1.96 million—a nearly 11% increase. As Shibarium serves as Shiba Inu’s Layer-2 blockchain solution, rising TVL indicates stronger adoption of its ecosystem, including staking, NFTs, and DeFi protocols.
Higher utilization of Shibarium directly contributes to increased transaction volume, which in turn drives more SHIB burns—since a portion of transaction fees is permanently removed from circulation. This creates a positive feedback loop: more usage → more burns → tighter supply → potential price appreciation.
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This dynamic differentiates Shiba Inu from purely meme-driven tokens, positioning it as a project with evolving fundamentals beneath its viral appeal.
Core Keywords Driving SHIB’s Narrative
The current momentum around Shiba Inu is shaped by several key themes:
- SHIB burn rate
- Shiba Inu price prediction
- Bull flag pattern
- Shibarium TVL
- SHIB price rally
- Meme coin recovery
- Tokenomics
- On-chain activity
These terms reflect both technical and fundamental drivers influencing investor sentiment and search behavior. By naturally integrating them into analysis—rather than forcing repetition—we enhance SEO performance while maintaining readability and credibility.
Frequently Asked Questions (FAQs)
Q: Why is Shiba Inu price dropping despite strong burn metrics?
A: While burn rates and network usage are bullish signals, SHIB is still influenced by broader market sentiment. Bitcoin and Ethereum downturns often drag down altcoins, including meme tokens like SHIB.
Q: Can a high burn rate really impact SHIB’s price?
A: Yes. A rising burn rate reduces circulating supply, which can create scarcity. When combined with steady or increasing demand, this scarcity has the potential to drive prices higher over time.
Q: What does the bull flag pattern mean for SHIB traders?
A: The bull flag suggests a temporary pause in an uptrend. If SHIB breaks above key resistance levels—especially $0.00001252 and $0.000019—it could confirm the pattern and lead to an 18% rally toward $0.0000138.
Q: How does Shibarium contribute to SHIB’s value?
A: Shibarium enhances SHIB’s utility by enabling low-cost transactions, DeFi applications, and NFT projects. Increased usage generates more burns and strengthens the token’s long-term value proposition.
Q: Is now a good time to buy SHIB?
A: That depends on your risk tolerance and investment strategy. With positive on-chain trends and a potential breakout setup, some investors see this as a strategic entry point—but always conduct independent research before investing.
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Final Outlook: Caution Meets Opportunity
Shiba Inu stands at a pivotal juncture. On one hand, technical structure favors an upside breakout, supported by strong fundamentals like surging burns, rising active addresses, and expanding Shibarium adoption. On the other hand, bearish momentum—as reflected in the RSI—and broader market headwinds pose legitimate risks.
For traders and investors, the coming days will be critical. A close above the 50-day SMA at $0.0000113 could act as a catalyst, reigniting bullish momentum and setting the stage for an 18% rally. Conversely, failure to gain traction may lead to further consolidation near support.
Regardless of short-term price action, the growing ecosystem around SHIB suggests that its narrative is evolving—from pure meme status toward a more utility-driven digital asset.
As always, approach with informed caution. Monitor key resistance levels, track burn metrics via Shibburn, and stay updated on Shibarium developments to make data-backed decisions in this fast-moving space.
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