Shiba Inu (SHIB) Primed for Breakout as Accumulation and Burn Rate Surge
Shiba Inu (SHIB) is showing strong signs of accumulation after exiting a prolonged downturn. The popular meme token is now range-bound in a tight consolidation zone. This current market position presents a compelling setup for a potential bullish move for SHIB.
shows that SHIB transactions jumped from 6,200 to 7,510, yet the price remained stagnant. Such a divergence of rising activity with flat price action typically indicates either accumulation or distribution.
In SHIB’s case, however, its net exchange outflow on May 20 was a massive -111.8 billion tokens. This particular data point firmly leans the argument toward accumulation. This kind of large-scale withdrawal of tokens to self-custody or cold wallets is often interpreted as a long-term bullish signal. It suggests investors are positioning for a future rally rather than looking to offload their SHIB tokens quickly.
Adding to this picture is a significant 85.81% increase in SHIB’s burn rate, with 15.3 million SHIB tokens reported , tightening the token supply further.
The technical chart for SHIB/USDT on the daily timeframe reveals critical signals. Notably, the RSI currently stands at 51.51, sitting just above the neutral 50 line. This places SHIB in a non-overbought, non-oversold zone.
Importantly, the RSI previously touched 60, showing bullish momentum before retracing. A move back above 60 could indicate the next leg up.
Meanwhile, the MACD lines are converging near the zero line, with a slight bullish crossover forming. The MACD histogram shows weakening negative momentum, suggesting bearish pressure is fading.
Finally, based on the Fibonacci setup anchored on the recent swing low ($0.00001027) to swing high ($0.00001606), several key levels emerge with immediate support at 0.382 Fib ($0.00001357), 0.5 Fib ($0.00001417), and 0.618 Fib ($0.00001478).
Furthermore, these are ideal zones for accumulation if SHIB revisits them–1.618 Fib at $0.00001841, 2.618 Fib at $0.00002220, 3.618 Fib at $0.00002599, and 4.236 Fib at $0.00002834.