Shiba Inu and Altcoin Season Breakout: Here’s the Big Correlation

Key Insights:

• Shiba Inu coin price recently broke long-term resistance with analysts targeting up to 500% gains.
• For now, Bitcoin dominance stays above 50%, limiting altcoin momentum.
• Burn rate surges 16,000% as SHIB supply drops, fueling bullish outlook.

Shiba Inu has moved above a key resistance level, raising questions about whether a new altseason could be forming.

Analysts say the current market looks different from 2021, with Bitcoin still leading and altcoins yet to catch up.

Shiba Inu (SHIB) Price Breakout Getting Fresh Attention

It is worth mentioning that Shiba Inu coin saw a clear breakout this July, moving past a multi-year resistance line.

Crypto analyst Javon Marks first pointed to the move on July 12, saying the token had broken through a long-standing trendline.

According to the update, Javon kept his price target at $0.000081, expecting over 500% upside.

Interestingly, at the time, the SHIB price was trading at $0.00001279. The memecoin was down 3% on the day and 15% over the past week.

It is important to note that the figure is still up 12.2% in the last month. Analysts said the breakout followed a typical pattern: a breakout, a retest of the old resistance line, and then a move into a new range.

According to Marks, SHIB had formed a hidden bullish divergence between late 2023 and early 2024. This signaled that momentum might be building even as prices moved sideways.

It is essential to note that other analysts have supported similar views. For instance, CryptoNuclear said the recent dip looked like a healthy retest after the breakout.

He gave a price target of $0.0000329. Tradersboat and Maddox Metrics also saw upside, with targets ranging as high as $0.000250.

Notably, these analysts said SHIB looked undervalued based on past patterns. So far, SHIB has held above the breakout line. As of writing, CoinMarketCap data showed that Shiba Inu price traded at $0.00001275, down by 4.32% in the past 24 hours.

However, while no timeline has been given for the move to $0.000081 or beyond, many still see potential if the market shifts.

Market Conditions Still Favour Bitcoin

In a separate development, the talk of altseason has grown, but most of the crypto market still sits under Bitcoin’s shadow.

Over the past year, Bitcoin’s dominance has stayed above 50%. That means most new money has gone into BTC and ETH, not into smaller coins.

There have been a few short pumps, such as with Solana and some AI-related cryptocurrency projects.

However, most altcoins have moved sideways or lost value. DeFi and NFT activity have remained low as there has been no clear sign of a retail wave entering the market.

This stands in contrast to 2021 when the last full altseason took place. Back then, Bitcoin’s dominance dropped from over 70% to around 40%.

At the time, the price of Ethereum rose from $730 to over $4,000. Digital assets like BNB, ADA, DOGE, and Shiba Inu saw major gains. DeFi and NFT tokens also had strong runs.

However, in 2025, those bullish conditions had not returned. SHIB’s breakout may be promising, but it has not triggered a broader shift, at least not yet.

Shiba Inu Coin Burn Rate and Supply Still in Focus

In another major update, some analysts say SHIB’s tokenomics could help push it higher.

For example, Rogozinski, the founder of WallStreetBets, said token burns could drive demand.

He pointed to Shiba Inu coin’s past, when Vitalik Buterin burned over 410 trillion tokens in 2021. That move helped the coin rise to its all-time high.

Recently, SHIB’s burn rate increased by over 16,000% in one day. A Coinbase user burned more than 600 million tokens, catching attention across the space.

This kind of activity can lead to lower supply, which may affect the price of the Shiba Inu coin over time. Based on the current outlook, it remains unclear whether SHIB will bring back or join the next altseason.