Shiba Inu is beginning to show signs of a major breakout due to a rare alignment of on-chain signals and strong bullish sentiment. Over the past week, two powerful metrics, the average holding time and token burn rate, have spiked dramatically. These developments come as Shiba Inu’s price follows Bitcoin’s surge past $122,000, lifting SHIB to a 30-day high of $0.00001391.
SHIB Holders Show Commitment
Shiba Inu investors are displaying stronger long-term conviction than at any other point in the current cycle. According to IntoTheBlock data, the average holding time of transacted SHIB tokens has increased by 783% in just the past seven days. This metric reflects how long SHIB coins were held before being moved on-chain, and such a quick increase indicates that most wallet holders are sitting on their tokens far longer than before.
This aligns with the broader trend that the average holding time across all SHIB addresses now stands at 2.8 years, which is more than half of the token’s total lifetime. Even as SHIB touched a seven-week high of $0.0000139 during early Monday trading, the data shows that many holders are bracing for much higher price levels rather than selling into short-term rallies. This increase in diamond hands behavior is a strong bullish signal that often leads up to further major upside movement.
SHIB Burn Rate Blows Past 1 Billion, Up 1,784%
Adding to the bullish narrative is the concurrent increase in Shiba Inu’s burn rate. According to data from Shibburn, the Shiba Inu burn rate has seen a massive increase in the past seven days, with the number of tokens burned crossing the 1 billion threshold. Particularly, the burn data shows that 1,055,861,987 SHIB tokens have been removed from circulation in the past seven days alone, which translates to a 1,784.86% increase compared to the previous week. Furthermore, another 4,705,361 SHIB tokens were destroyed over the past 24 hours, pushing the daily burn rate up by 8.78%.
Burning tokens reduces the available supply in the market, and when paired with rising demand or a strong holding mentality, it creates the ideal conditions for a supply squeeze. The current burn rate explosion shows increasing effort within the community to drive up scarcity at a time when SHIB’s market structure appears to be tilting bullish.
Shiba Inu’s current price action supports the idea that a breakout is underway. The token has followed Bitcoin’s most recent bullish breakout to a new price peak of $122,838. Although this move saw the Shiba Inu price reach a 30-day high of $0.00001391, it has since corrected a bit alongside Bitcoin’s correction to $117,000. Nonetheless, CoinGecko price data shows that Shiba Inu is still up by 9.7% in a seven-day timeframe.
At the time of writing, Shiba Inu is trading at $0.000013.
Featured image from Getty Images, chart from Tradingview.com
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