- Shiba Inu gained 17% in a week as nearly 3 billion SHIB tokens were burned, reducing supply and boosting market interest.
- Traders are watching key support near $0.0000050 as futures activity and technical signals point to a possible continued recovery.
Shiba Inu price has gained 17% over the past week as a sharp increase in token burns reduced the circulating supply. Nearly 2.98 billion SHIB tokens were removed from circulation, marking the biggest weekly burn activity in about a year.
The move has renewed interest among traders, who are now watching whether lower supply and rising market activity can help SHIB extend its recovery.
SHIB Burns Reach One-Year High
Shiba Inu’s latest price recovery has followed a major increase in burn activity. Nearly 2.98 billion SHIB tokens were permanently destroyed within seven days, putting supply reduction back in focus.
One transaction accounted for more than 757 million SHIB tokens, making it one of the largest single burns during the recent campaign. Ecosystem projects such as WoofSwap also contributed by sending additional tokens to dead wallets.
Data from Shibburn shows that more than 410.8 trillion SHIB has been burned since launch, removing around 41% of the original one-quadrillion supply.
WoofSwap V3 has emerged as a major contributor, reportedly burning over 3 billion SHIB within 30 days. Robinhood-linked transactions also added about 159.6 million SHIB to the total burns.
SHIB Futures Volume Surges 81%
Trader activity has increased alongside the price recovery. SHIB futures trading volume jumped 81.1% week over week to around $141.7 million per day, according to CoinGlass data.
The rise in futures volume shows more traders are positioning for price movements. However, open interest slightly declined to $46.4 million, suggesting some traders locked in profits after the recent rally.
Higher trading activity combined with a small drop in open positions shows that traders are adjusting their strategies rather than leaving the market.
SHIB Price Tests Key Resistance Levels
Shiba Inu’s chart has improved after breaking above a long-term descending resistance line. The token is now testing whether buyers can maintain control above the breakout area.
The $0.0000050 level is the key support zone to watch. Holding above this level could strengthen SHIB’s recovery and give buyers a chance to target the 200-day EMA near $0.0000060.
A move above $0.0000060 could push SHIB toward the next resistance level around $0.0000070.
However, previous price action shows sellers remain active. SHIB recently climbed close to 40% before facing rejection near $0.0000058, leading to a pullback toward lower levels.
Liquidation Zones Could Trigger More Volatility
Despite the recent gains, SHIB still faces downside risks. Large liquidation clusters sit between $0.0000046 and $0.0000047, meaning a drop below this range could increase selling pressure.
The token has managed to stay above the Supertrend support level near $0.00000444, keeping the broader recovery structure intact.
Traders will likely focus on whether SHIB can defend current support while maintaining strong buying activity.
Can SHIB Burns Push Prices Higher?
The recent rally has been supported by three major factors: increased token burns, stronger futures activity, and improved technical conditions.
Still, continued gains will depend on whether demand remains strong and whether burn activity continues at a similar pace.
If SHIB holds above $0.0000050, buyers could target $0.0000060 and $0.0000070 next. A break below support, however, could expose the token to another decline.
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