Shiba Inu price is holding its yearly low while recording a sudden 1,000% surge in burn rate, raising the possibility of a reversal forming at a major support level.
Summary
- Sentiment is mixed as SHIB stabilises at a critical long-term level
- Burn-rate spike creates renewed discussion around supply-driven momentum
- Market participants are watching for signs of early accumulation
Shiba Inu (SHIB) is trading at one of its most critical price levels of the year as it continues to defend the yearly low. The asset has returned to a long-standing support zone while on-chain data shows a dramatic increase in token burns.
With Shiba Inu also rolling out a new debit card that allows users to spend SHIB and earn rewards, these developments are creating early signals that a potential reversal may be forming if the current structure holds.
Shiba Inu price key technical points:
- SHIB is trading directly on the yearly low, a long-term support level
- Candle closes above support suggest demand is still present
- Burn rate has surged over 1,000% in the past 24 hours
Shiba Inu’s current price action places the asset at a high-importance technical point, as the yearly low now acts as the primary support level. This region, classified as a weak low due to the sharp wick that originally formed it, has been retested with price continuing to close above it.
This behaviour indicates that demand remains active in the market, with buyers attempting to defend this major level.
From a structural standpoint, the yearly low aligns with a key monthly support that has held for an extended period. The retest taking place now is significant because price is interacting with the same zone that previously halted a major decline. When markets revisit these long-term support levels and begin printing multiple candle closes above them, it often signals that a stabilisation phase is underway.
Another important factor is the notable rise in Shiba Inu’s burn rate. According to data from Shibburn, the burn rate has surged by more than 1,000% within the last 24 hours. A spike of this magnitude reduces circulating supply and can act as a catalyst for momentum shifts when combined with strong technical support.
While a high burn rate alone does not guarantee a reversal, the combination of supply reduction and structural defence strengthens the case for a potential bounce.
The overall setup suggests that, as long as the yearly low remains intact, Shiba Inu may attempt a rotation toward higher technical levels such as the point of control and nearby resistance zones. However, failure to maintain support would invalidate the scenario and expose SHIB to deeper downside.
What to expect in the coming price action
If SHIB continues to hold the yearly low, a rebound toward the point of control and upper range levels may develop. A breakdown of this key support, however, would place the asset at risk of exploring new lows for 2025.
