• Whale inflows and low volatility signaled strong accumulation and market stability.
• Open Interest and short liquidations supported SHIB’s bullish breakout potential.

Shiba Inu’s [SHIB] momentum surged as the 24-hour burn rate spiked by 4,833.89%, revealing a renewed wave of community activity and token destruction. 

This dramatic uptick suggests heightened efforts to reduce SHIB’s circulating supply, often viewed as a bullish signal. 

Meanwhile, overall market sentiment appears to have shifted positively, supported by steady price appreciation.

Whale accumulation intensifies as SHIB volatility cools down

Whale accumulation has intensified, with large holder netflow soaring by over 6,050% in the last seven days.

This level of accumulation, backed by a 3,077% monthly increase, highlighted the rising conviction among long-term investors. 

Such inflows from deep-pocketed holders typically precede major price moves, especially when combined with bullish technical structures. 

Volatility has dropped to 69.20%, the lowest in the past 30 days, following a recent high of 84.62% in late April. 

This drop reflects a temporary stabilization phase, which can often act as a launchpad for the next significant price movement. Historically, such dips in volatility during consolidation typically foreshadow a breakout. 

Traders show conviction

In the derivatives market, volume has climbed by 27.30% to $122.26 million, while Open Interest was up 11.84%, now totaling $174.12 million. 

These increases indicate growing speculative interest and participation in the market, frequently a precursor to higher volatility and directional movement.

SHIB’s exchange reserves dropped by 6.57%, while net outflows spiked by over 1,558%, suggesting whales are moving assets off exchanges.

This combination suggests that tokens are leaving exchanges and moving into cold storage, signaling reduced selling pressure and increased long-term conviction. 

Short squeezes fuel bullish continuation?

The OKX liquidation heatmap revealed strong liquidations of short positions as SHIB’s price climbed beyond key resistance zones.

These liquidations provide additional upward pressure, as forced buybacks trigger momentum-driven rallies. 

The clustering of liquidations near $0.0000132 and $0.0000138 confirms that bears are being squeezed, creating a favorable environment for bulls to push prices further. 

SHIB recently broke out of a descending wedge and retested the key support zone around $0.00001271. Since then, it has been consolidating in a range between $0.00001271 and $0.00001600, forming a bullish rectangle. 

At the time of writing, SHIB traded at $0.00001351, up 5.37% on the day.

The successful breakout, followed by stable consolidation, suggested a healthy structure that could support a renewed rally if volume and sentiment remain elevated in the coming days.

Is SHIB preparing for a breakout?

SHIB’s on-chain accumulation, rising derivatives activity, declining volatility, and short liquidations all point to building bullish momentum. 

If the price manages to break past $0.00001600 with strong volume, the next target could be the $0.00002400 zone. 

Therefore, current conditions suggest SHIB may be poised to escape its consolidation and ignite the next leg of its rally.

read more