Amid a broader crypto rally fueled by concerns over a potential U.S. government shutdown, Shiba Inu (SHIB) gained more than 3% in the past 24 hours. An analyst now projects a potential 120% rally if SHIB breaks above a long-term resistance. Will Shiba Inu take such a big leap? Let’s take a closer look.
Daily Chart Signals Compression Ahead of Potential Rally
Analyst Smith (@CryptoSmith0x) observed that SHIB is pressing against a long-term descending trendline that has capped rallies for most of 2025. He argues that if the token can break above this structure, it could trigger an explosive rally toward $0.000033 — representing an upside of nearly 120%.
According to Smith, the $0.0000148 level is the critical breakout zone. A daily close above it would confirm the move and could fuel momentum as traders reposition. Until then, SHIB remains in consolidation near $0.000012, where it has defended key support in recent months.
SHIB Token Burns Reduce Circulating Supply
On-chain supply trends lend weight to the bullish case. Data from Shibburn show more than 410 trillion SHIB have been permanently burned. In the past 24 hours, nearly 689,000 tokens were removed, pushing the burn rate up 38%. While small compared with the total supply, consistent burns gradually reduce liquid circulation.
Currently, SHIB’s supply stands at around 584 trillion, with 4.5 trillion tokens staked. Analysts note that both factors limit immediate supply and could amplify price pressure if demand accelerates.
Additionally, exchange data from CryptoQuant show that SHIB reserves across centralized platforms have dropped nearly 40% since the start of 2025, reaching their lowest point since early 2023. This decline indicates tokens are moving into long-term storage, easing selling pressure.
Historically, sharp drops in exchange reserves have preceded rallies, though the timing of these moves has varied. Analysts point to this as another condition that could support Smith’s breakout scenario.
In derivatives markets, Coinglass data show$78,000 worth of SHIB positions were liquidated in the past 24 hours, with shorts accounting for nearly $67,000 of that figure. Analysts argue that such short squeezes can accelerate rallies, and a breakout above resistance could trigger further liquidations.
Chart Levels Define Bullish and Bearish Paths
On the daily chart, SHIB to USD trades close to $0.000012 after defending this zone as support since August. The descending trendline continues to act as resistance, with the next key level at $0.0000148.
A breakout above that level could see SHIB target $0.0000195 and $0.000025 in the near term. If momentum persists, the move toward $0.000033 — as forecasted by Smith — would represent a 120% rally from current levels.
The Relative Strength Index (RSI) sits at 51, showing neutral momentum. This leaves room for expansion but also suggests that SHIB needs a catalyst to pick a direction. The 200-day EMA is positioned near $0.0000145 and will act as a major test. Analysts caution that unless SHIB closes above this average, the bullish case remains unconfirmed.
If SHIB price fails to break out, support remains at $0.0000105, with a deeper downside risk toward $0.000009. For now, the neutral scenario is continued range-bound trading between $0.000011 and $0.000014 until a decisive breakout occurs.
For continued analysis on Shiba Inu’s breakout prospects and the broader crypto market, return here for the latest updates as new developments emerge.
