- ShibaInu has seen a 6,306% surge in whale inflows and a massive spike in token burns, fueling speculation of a potential breakout from its falling wedge pattern.
- However, rising NVT ratios and declining network growth raise concerns that the rally may be short-lived without stronger user adoption.
ShibaInu (SHIB) is back in the spotlight after a staggering 6,306% spike in whale inflows, signaling renewed investor interest following its Shibarium upgrade. With SHIB now trading near $0.00001160 and Futures volume exceeding $147 million—mostly on Gate.io—the meme coin might be staging a major comeback. But is this the start of a genuine breakout, or just a bull trap wrapped in hype?
Whales and Burn Rates Reignite Investor Confidence
The buzz around SHIB isn’t just about whale moves. Token burns have skyrocketed too, with over 1.19 billion SHIB burned last week, representing a 1,499% surge. In just 24 hours, burn activity jumped another 958%, accompanied by a spike in token circulation hitting 494.8 billion. This increased velocity suggests speculative trading is intensifying, potentially boosting SHIB’s deflationary appeal and energizing long-term holders.
NVT Ratio Sounds a Warning Amid Price Momentum
Despite this bullish narrative, a sharp spike in SHIB’s Network Value to Transactions (NVT) ratio to 1,194 suggests overvaluation. While traders may keep buying, the disconnect between SHIB’s market cap and actual on-chain usage raises caution. Historically, such spikes have preceded corrections, implying SHIB’s price may outpace its real utility—at least in the short term.
Network Growth Slows – Can SHIB Sustain the Hype?
What’s more concerning is that network growth has stalled, with only 476 new addresses added—despite the hype and token activity. This suggests rising prices aren’t being backed by new user adoption, a critical factor for long-term sustainability.
Breakout or Bull Trap? All Eyes on the Falling Wedge
Technically, ShibaInu is locked in a bullish falling wedge pattern. A successful breakout could send the token toward the $0.00001448 level, marking a potential 27% upside. But without improved fundamentals—namely, more users and real-world usage—the breakout may be short-lived.
SHIB is at a pivotal moment. Massive inflows, burn spikes, and bullish technical patterns paint a promising picture. However, weak network growth and a soaring NVT ratio signal caution. Traders should watch for a confirmed breakout before placing big bets—because this rally could either be the start of something big or just another fake-out.
