Shiba Inu has dropped into a historically significant demand zone that has previously triggered major price rallies. The development comes alongside a dramatic increase in SHIB's burn rate. Recent data shows token burns have surged by more than 1,100% following a single wallet transaction that removed 28 million SHIB from circulation. This combination of technical positioning and reduced supply has fueled speculation about a potential price breakout. Historical Demand Zone Shows Bullish Pattern The current price level represents a zone where buyer interest has historically intensified. Since 2022, this demand area has marked the bottom before significant rallies occurred. Each instance saw substantial price appreciation after SHIB entered this range. The most recent example played out in 2024. SHIB climbed from $0.00000809 to $0.000032 after touching this demand zone. That move represented a gain of nearly 300% within a relatively short timeframe. Analysts note that SHIB remains within this zone currently. Early signs suggest upward momentum may be building. However, confirmation requires the price to break through key resistance levels. The meme coin must clear $0.00001385 before targeting the next hurdle at $0.000021. A successful breach of these barriers could open the path toward $0.000032. This level matches the peak reached during the 2024 rally. Technical indicators are adding weight to the bullish outlook. A wedge pattern has formed on SHIB's price chart. This formation typically precedes sharp upward movements when the price breaks above the upper trendline. Market observers estimate a potential surge exceeding 200% if the breakout confirms. The pattern's geometry suggests this magnitude of movement aligns with historical precedent. Token Burns Accelerate While Network Activity Declines The burn mechanism has gained significant traction recently. More than 28 million tokens were destroyed in a single transaction. This event pushed the overall burn rate up by over 1,100% in a short period. Token burns permanently remove SHIB from circulation. The process reduces total supply, which can create upward price pressure if demand remains constant or increases. The recent acceleration represents one of the most aggressive burn periods in recent months. Exchange inflows have also spiked dramatically. This metric tracks SHIB moving onto trading platforms. Higher inflows often signal increased volatility ahead. The direction of that volatility depends on whether the activity skews toward buying or selling. If the surge in exchange activity translates to buying pressure, it could amplify the bullish case. The combination of reduced supply and increased demand would create favorable conditions for price appreciation. Despite positive developments in burn rates and technical positioning, Shibarium faces challenges. The layer-2 network built for SHIB transactions has experienced declining activity. Total Value Locked on Shibarium currently sits at approximately $701,101 according to DeFiLlama. This figure represents a sharp drop from the peak of over $6 million recorded in late 2024. The decline exceeds 88% from those highs. TVL measures the dollar value of assets deposited in a network's protocols. Falling TVL suggests reduced user engagement and capital deployment. This trend could weaken the broader ecosystem supporting SHIB.
