61 mln Shiba Inu burned in a week – Will this help SHIB reach $0.000020?

• Intraday traders were over-leveraged at $0.0000154 on the lower side and $0.0000176 on the upper side.
• Shiba Inu’s community burned a substantial 16,479,283 SHIB in the past 24 hours.

Shiba Inu [SHIB] is shifting market sentiment following the formation of bullish price action and a significant surge in its burn rate. Another major factor supporting the memecoin is the broader market rebound.

Shiba Inu’s recent burn 

Recently, blockchain-based transaction tracker Shibburn reported that the memecoin community burned a substantial 16,479,283 SHIB in the past 24 hours and 61,082,353 SHIB over the past seven days.

Token burning is a process in which the community permanently removes tokens from the total circulating supply to support long-term appreciation and control inflation.

This significant burn rate has the potential to create buying pressure and drive further upside momentum.

Price action and key levels 

SHIB was trading near $0.0000165 at press time, having risen over 5.10% in the past 24 hours.

This price increase broke a crucial resistance level that the memecoin had been testing for an extended period, leading to an 80% jump in trading volume.

However, this resistance is not just any level, it is the neckline of an ascending triangle pattern that SHIB has broken on the four-hour timeframe and is now retesting.

Source: TradingView

Based on recent price action and historical patterns, a successful retest above $0.000017 could confirm bullish momentum, setting the stage for an 18% surge toward $0.000020.

Major liquidation level 

Considering the current market sentiment and the recent breakout in SHIB, intraday traders are leaning bullish, as reported by on-chain analytics firm Coinglass.

At press time, traders holding long positions are over-leveraged at $0.0000154, with $2 million worth of open positions, which currently serves as strong support.

Source: Coinglass

Conversely, traders holding short positions are over-leveraged at $0.0000176, with $940K worth of positions, making it a key resistance level for the meme coin.

These open positions could face liquidation if the price moves significantly in either direction.

However, given the positive sentiment and on-chain data, it appears that bulls are currently in control and could trigger the liquidation of short positions if SHIB continues its upward momentum.