Shiba Inu (SHIB) Shows Renewed Signs of a Breakout After Nearly Four Years of Consolidation

Key on-chain metrics — including aggressive whale accumulation, an unprecedented token burn rate, and a significant decline in exchange reserves — suggest that SHIB may be on the verge of a major price movement.

Shiba Inu price is showing renewed signs of a breakout after nearly four years of consolidation, with key on-chain metrics pointing to a potential move.

Shiba Inu Nears the End of a Multi-Year Consolidation Phase

Since its explosive rally in 2021, largely driven by Ethereum co-founder Vitalik Buterin’s historic burn of 400 trillion tokens, SHIB has been locked within a tight trading range between $0.000005 and $0.000096. However, recent price action may be signaling the end of this extended sideways trend.

In 2024, SHIB crossed above the critical resistance level at $0.000014 and is currently attempting to establish it as a new support base — a potential signal of bullish momentum.

A weekly candle close above the 200-week moving average at approximately $0.0000182 would confirm a long-term trend reversal. The next technical target lies near $0.000037, with further upside potential toward the all-time high of $0.00025, should bullish momentum continue.

Bearish Scenario

Despite promising indicators, Bitcoin’s continued market dominance could draw liquidity away from meme coins like SHIB. If this trend persists, SHIB may revisit support levels around $0.0000055 and remain in consolidation.

Huge Amounts of SHIB Are Being Dumped

Recent on-chain data from Santiment reveals that large holders — or “whales” — have been accumulating approximately 530 trillion SHIB since January 2025. Simultaneously, SHIB held on centralized exchanges has declined by 5 trillion tokens, now totaling 141 trillion. This shift reduces available liquidity and could contribute to a potential supply shock, historically a bullish catalyst.

Notably, a similar pattern of whale accumulation and reduced circulating supply preceded SHIB’s parabolic rally in 2021.

In a further sign of tightening supply, SHIB’s token burn rate surged by more than 11,000% in the past 24 hours, permanently removing over 28 million tokens from circulation. These deflationary dynamics mirror those seen during the previous breakout and may enhance bullish sentiment.

Shiba Inu is at a pivotal moment as it attempts to break out of a multi-year consolidation phase. The convergence of whale accumulation, surging burn activity, and declining exchange reserves creates a favorable environment for a breakout. However, broader market dynamics — particularly Bitcoin’s performance — remain a critical factor.

If current momentum holds, SHIB may finally break out of its multi-year consolidation and initiate a new upward trend. Conversely, any loss of bullish pressure or macro-driven headwinds could prolong the status quo.