Shiba Inu Burn Surge: Can Deflation Power a Price Turnaround?

SHIB burns rise sharply as supply drops and community activity strengthens.

Price recovery needs higher trading volume despite growing bullish signals.

Bulls must break key resistance for a possible trend reversal.

Shiba Inu holders have watched heavy price swings test community confidence over recent months. Market pressure has pushed the meme token lower, with strong correlation to Bitcoin shaping every major move. Even so, a fresh burn spike has sparked new interest among traders who follow supply trends closely. A sharp rise in destroyed tokens has fueled early optimism as December gains momentum. Many traders now ask whether stronger deflation can spark a broader recovery soon.

Supply Shrinks As Burn Rate Accelerates

Shiba Inu supporters have pushed burn activity to one of the strongest weekly levels this year. Community members destroyed over 116 million tokens during the past seven days, including a single-day burn of 35 million tokens. Combined efforts have reduced the circulating pool to nearly 585 trillion tokens. Another 3.97 trillion remain locked across various DeFi platforms, which adds more scarcity to the overall structure.

A burn-driven 6 percent rally arrived with renewed buying action, showing clear support from traders who track deflation trends. Bulls welcomed this shift after a long stretch of selling across major exchanges. Market observers still highlight weak support zones, which remain far below current levels. A risk-off environment continues to guide broader sentiment across the crypto space, so stronger confirmation signals remain necessary.

has not revisited the $0.00001 zone since early November. Strong deflation alone cannot lift prices without matching trading volume, and recent numbers remain muted. Spot activity fell under 150 million dollars this Tuesday, which reflects cautious behavior across retail markets. Demand must rise before deflation can influence long-term direction with greater strength.

Bulls Face A Key Test Before Trend Reversal

Buying momentum has gained pace during recent sessions. Several green candles have formed across lower timeframes, which signals a possible trend shift. Bull and Bear Power data shows buyers taking control for the first time this month. Traders now watch for stronger follow-through as December continues. A major resistance level sits near the red Bollinger Band around $0.00000876.

A breakout above that line could mark the first meaningful trend shift since late November. Stronger confidence from bulls may follow a decisive close above that barrier. Many traders see this point as a gateway to a broader rally, especially with burn volume rising every week. Shiba Inu buyers must build sustained pressure before any major reversal forms.

A higher burn rate creates helpful support, but market demand must expand for a long-term price climb. Stronger volume often signals healthier momentum, so traders monitor upcoming sessions closely. A combination of deflation, renewed interest, and clearer market structure could support a stronger move later this month.