• SHIB rebounds 6%, approaching resistance between $0.0000055 and $0.0000056.
  • A confirmed breakout could push SHIB toward the $0.000006 target.
  • Weak burns shift attention toward trading demand and derivatives positioning.

Shiba Inu has caught traders’ attention after a sharp 6% rebound. SHIB climbed from nearly $0.0000050 toward $0.0000054 during the latest move. The rally pushed price toward a critical resistance zone. Bulls now face sellers near $0.0000055 and $0.0000056. A clean breakout could bring $0.000006 back into focus, while weak burn activity adds an unusual twist.

SHIB Faces a Key Resistance Zone

SHIB has recovered strongly after spending time near $0.0000050. Buyers pushed the token toward $0.0000054 during the latest rebound. The move gave SHIB stronger short-term momentum than much of the broader market. However, bulls now face a major technical hurdle near $0.0000055 and $0.0000056. Sellers could emerge again around this region after the recent climb. A convincing breakout could improve the short-term technical structure.

SHIB could then retest the $0.000006 level. That target sits roughly 11% above the recent price near $0.0000054. SHIB has struggled to reclaim $0.000006 during the recent decline. Therefore, bulls need sustained buying pressure above nearby resistance. A brief wick above resistance may not confirm a genuine breakout. Buyers need stronger follow-through after any move above $0.0000056.

Holding above $0.0000052 also remains important for the current setup. That level could help buyers maintain control during another short-term pullback. Losing $0.0000052 could shift attention back toward $0.0000050. SHIB’s latest rally comes despite weaker token burn activity. Shibburn recorded zero SHIB burns during one recent 24-hour period. The daily burn rate consequently showed a 100% decline.

EliteFXLabs Banner

Weak Burns Leave Trading Demand in Focus

Token burns can reduce circulating supply over time. Many SHIB traders view burns as a potential scarcity catalyst. However, recent price action shows limited dependence on that narrative. SHIB burns reached roughly 3.2 billion during July before cooling sharply. Price still managed to rebound despite the slowdown. The latest move therefore appears driven by trading demand and broader market recovery.

Derivatives activity also supports that interpretation. More than $60 million in SHIB futures positions remained open after recent liquidations. Futures trading volume also increased sharply during the rebound. Such positioning can amplify price movements in either direction. Strong buying could accelerate a breakout above the current resistance zone. However, another liquidation wave could quickly increase selling pressure.

For now, SHIB remains focused on the $0.0000055 to $0.0000056 resistance area. A successful breakout could open the door toward $0.000006. Failure near resistance could trigger another pullback toward $0.0000052. Losing $0.0000052 could expose $0.0000050 again. Such a move would weaken the current breakout structure.

Profile picture of Patrick Kariuki
Patrick Kariuki Posted by

Cryptocurrency Writer

Patrick is a seasoned cryptocurrency writer with over five years of experience. His aim is to help readers stay informed and make informed trading & investment decisions.