Shiba Inu (SHIB) continues to hold a resilient bullish structure despite a 3.18% dip on June 27, trading at $0.0000112. While the broader crypto market faces volatility, SHIB has successfully defended the critical psychological support level of $0.00001. With growing momentum—fueled by a 12,000% surge in its burn rate—investors are now speculating whether an 18% price rally is on the horizon.
Bull Flag Pattern Signals Potential 18% Upside
Technical analysis suggests Shiba Inu is poised for a significant upward move. After ending a seven-week downtrend, SHIB has formed a bull flag pattern on the four-hour chart—a classic continuation signal in technical trading. This formation typically follows a strong price increase, followed by a brief consolidation period, indicating that the uptrend may resume with renewed strength.
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If the pattern plays out as expected, SHIB could climb to $0.0000138, representing an 18% gain from current levels. This would mark the highest price for Shiba Inu in the past month, reinforcing bullish sentiment among traders and long-term holders.
However, reaching this target hinges on overcoming key resistance levels. The upper boundary of the bull flag sits near $0.000019—an aggressive but not impossible target. More immediately, SHIB must clear two critical moving averages:
- The 50-day Simple Moving Average (SMA) at $0.0000113 — a close above this level would confirm short-term bullish momentum.
- The 20-day SMA at $0.00001252 — historically, decisive breaks above this zone have preceded notable rallies.
Failure to sustain momentum above these levels could result in another pullback, prolonging consolidation.
Despite the optimistic setup, the Relative Strength Index (RSI) currently reads at 44, suggesting bearish pressure still lingers. An RSI below 50 indicates that selling momentum has not fully dissipated, which could delay or weaken the anticipated breakout.
Supply Shock: SHIB Burn Rate Surges 12,833%
One of the most compelling catalysts behind the potential rally is the dramatic increase in SHIB’s token burn rate. According to data from Shibburn, the burn rate spiked by 12,833% within 24 hours, removing over 13 million tokens from circulation. Over the past week alone, more than 75 million SHIB tokens have been permanently burned.
Token burning reduces supply, creating upward pressure on price when demand remains constant or increases—a fundamental principle of scarcity-driven value appreciation. This surge in burns coincides with rising network activity, further strengthening the bullish case.
Santiment data reveals a 27% increase in daily active addresses, jumping from 2,777 to 3,534 in just one day. Higher user engagement often correlates with increased transaction volume and speculative interest—both positive signs for price momentum.
Additionally, Shibarium, Shiba Inu’s Layer-2 blockchain, has seen its Total Value Locked (TVL) grow from $1.77 million to $1.96 million recently. This growth likely contributes to higher gas fees and more frequent burn events, as transactions on Shibarium trigger automatic SHIB burns.
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The confluence of reduced supply, increased usage, and expanding infrastructure paints a promising picture for SHIB’s future beyond meme-driven hype.
Frequently Asked Questions (FAQs)
Q: Why is Shiba Inu price dropping today despite positive developments?
A: Short-term price dips often reflect broader market trends. On June 27, Bitcoin, Ethereum, and most major cryptocurrencies declined, contributing to downward pressure on SHIB despite its strong fundamentals.
Q: How does the SHIB burn rate affect price?
A: A higher burn rate reduces circulating supply, increasing scarcity. When combined with steady or growing demand, this dynamic can create bullish conditions and support price appreciation over time.
Q: Can Shiba Inu sustain an 18% rally?
A: Yes—but only if it breaks and holds above key resistance levels like the 20-day and 50-day SMAs. Continued network activity and sustained burning will also be crucial to maintaining momentum.
Q: What role does Shibarium play in SHIB’s price movement?
A: Shibarium enhances SHIB’s utility by enabling fast, low-cost transactions and decentralized applications (dApps). Increased adoption on this network leads to more burns and greater ecosystem engagement—both bullish signals.
Q: Is SHIB still considered a high-risk investment?
A: Absolutely. As a meme coin, SHIB remains highly volatile and sentiment-driven. While recent metrics are positive, investors should practice risk management and avoid allocating more than they can afford to lose.
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The key themes driving this analysis—Shiba Inu price, SHIB burn rate, bull flag pattern, Shibarium TVL, SHIB price prediction, meme coin rally, token burning, and crypto technical analysis—are central to understanding SHIB’s current market behavior.
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Final Outlook: Caution Meets Opportunity
While Shiba Inu shows strong signs of recovery, investors should remain cautious. The market remains sensitive to macroeconomic factors and Bitcoin’s performance. However, SHIB’s fundamentals are improving:
- Record-breaking burn rates signal strong community participation.
- Rising active addresses reflect growing network usage.
- Technical indicators suggest a potential breakout is forming.
- Infrastructure development via Shibarium adds long-term value.
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For traders watching SHIB, the next few days will be critical. A confirmed close above $0.0000113 (50-day SMA) could trigger a wave of buying momentum toward $0.0000138—or higher. Conversely, failure to break resistance may lead to extended sideways movement or another test of support near $0.00001.
In summary, while an 18% rally is technically plausible and supported by multiple on-chain and chart-based indicators, confirmation is still pending. The combination of supply reduction, increasing demand signals, and technical readiness makes Shiba Inu one of the most closely watched meme coins entering July 2025.