Shiba Inu jumps 27% as token burns hit 365‑day high

Shiba Inu (SHIB) rallied 27% over the past week, propelled by a 365‑day high in daily token burns, even as analytics flagged whale exits that drained liquidity from the market [1].

At a glance

What drove the surge

The price spike coincided with a broader crypto market recovery, as Bitcoin held key technical levels and offered a tailwind for altcoins [1]. Volume surged to $358 million in the last 24 hours, outpacing other similarly sized assets [1]. The primary driver was an unprecedented burn rate: 1.125 billion SHIB were destroyed in a single day, followed by 1.092 billion the next, the highest daily totals in a full year [1]. These burns were triggered by Woof Swap V3, a SHIB‑focused launchpad that automatically burns SHIB on each transaction [1].

Whale and retail dynamics

Santiment data showed a spike in whale activity, with 52 whale transactions in one day—the most since March 31—while social dominance rose to 0.084%, the highest since early April [1]. Despite the price rally, exchange inflows were modest, with roughly 100 billion SHIB returning to exchanges, suggesting most holders remained on‑chain [1]. Retail traders, however, chased the rally, providing liquidity that allowed large holders to exit [1]. In parallel, TradingView reported a 3,894% jump in the burn rate over the prior 24 hours, with 4.83 million SHIB burned across seven transactions [2]. Large‑transaction volume rose 223% to $435.66 million, indicating heightened whale interest [2].

Price context and resistance

SHIB broke above its 50‑day simple moving average at $0.00002471 and peaked near $0.00002625 before meeting resistance [2]. The token remains up 7% over the past week and 218% year‑to‑date, despite a 1.5% dip in the most recent 24 hours [2].

What to watch

• Price levels: Watch $0.0000270 as potential resistance and $0.0000230 as near‑term support.
• Burn activity: Monitor daily burn totals; sustained high burns could tighten supply and support further price gains.
• Whale flows: Large‑transaction volume exceeding $400 million may signal upcoming liquidity shifts.

The surge underscores how token‑burn mechanisms can ignite short‑term price rallies, yet the simultaneous whale exits highlight the fragility of such moves. Whether continued burns will sustain momentum or trigger another liquidity crunch remains to be seen.