SHIB surges 22% in a week as analysts eye 5,000% upside

Shiba Inu's 22% weekly rally has reignited bullish price predictions, with some analysts projecting a 5,000% upside scenario as on-chain data shows 811 billion tokens leaving exchanges.

SHIB rose 22% to $0.00000566 this week as 811 billion tokens left exchanges and the burn rate increased 441%.

Data from Shibburn shows 41.8 million SHIB moved to dead wallets in the past 24 hours, a 441% jump in the burn rate, while CryptoQuant data reported by CryptoNews shows exchange netflow collapsed to 212.3 billion SHIB from above one trillion.

The token trades 94% below its 2021 peak of $0.00008845, with an uncapped supply of 589 trillion tokens. The weekly RSI broke a two-year downtrend this summer, and the delayed Shibarium privacy upgrade with Zama remains a live event that could land any week in August. A fresh UEX.US listing has widened access.

Analysts see the $0.00000548 resistance wall as the next test. A break above that level could open the door to predictions of a 5,000% price explosion, though the token's uncapped supply and 94% drawdown from its peak temper the bullish case.

The exchange outflow marks the sharpest netflow drop of the summer, according to CryptoQuant data. Tokens leaving exchanges typically means holders locking away supply rather than selling, a pattern that has preceded extended SHIB rallies on record.

The burn activity adds another layer of supply pressure. The 41.8 million SHIB burned in the last day represents a significant acceleration from the barely noticeable burn activity of recent weeks, according to Shibburn.

The $0.00000548 Resistance Wall

The bullish case centers on the $0.00000548 resistance level that rejected July's run. A weekly close above this level could trigger a move toward the $0.00001 range, according to technical analysts tracking the token. The 5,000% upside scenario would imply a price near $0.00028, a level not seen since the 2021 bull market.

However, skeptics note that SHIB's uncapped supply works against sustained appreciation. With 589 trillion tokens in circulation and no supply ceiling, every rally faces dilution pressure from newly minted tokens.

Shibarium Privacy Upgrade Could Land in August

The delayed Shibarium privacy upgrade with Zama remains a live event that could land any week in August. The upgrade would add privacy features to the Layer 2 network, potentially attracting new users and developers.

A fresh listing on UEX.US has also widened access to the token, according to CoinMarketCap. The listing follows a broader crypto market resurgence that has lifted sentiment across major assets including Bitcoin and Ethereum.

The SHIB rally reflects broader meme coin momentum, with Pepe and Dogecoin also posting gains. But the token's 94% drawdown from its 2021 peak and uncapped supply mean even a 5,000% move would only partially recover historical losses. The next key test is whether SHIB can hold above $0.000005 and break the $0.00000548 resistance.

This article is for informational purposes only and does not constitute investment advice.