Shiba Inu: Will burn surge and Japan approval push SHIB toward a full recovery?

Key Takeaways

What drives SHIB’s early recovery signals in the first half?

Strong burn acceleration and Japan’s Green List approval strengthen SHIB’s bullish foundation.

What supports SHIB’s upward momentum in the second half?

Falling exchange reserves and buy-dominant CVD reinforce improving demand conditions.

Shiba Inu’s [SHIB] on-chain activity intensified after more than 18 million SHIB disappeared from circulation in 24 hours, reinforcing a growing supply-shock narrative that aligns with improving market sentiment.

The burn acceleration becomes even more impactful when considering the past week’s destruction of 831 million SHIB, showing a strong increase in community participation. 

These burn levels tighten liquid supply and create better conditions for upward volatility, especially when market structure begins stabilizing. 

Moreover, this trend arrives at a moment when SHIB attempts to hold key support, which strengthens the bullish backdrop. 

Although burns alone cannot spark a rally, this momentum supports a healthier short-term outlook.

Japan’s Green List upgrade gives SHIB a fresh boost

Japan added SHIB to its respected Green List, and this move gives the token a major regulatory advantage in one of the world’s strictest crypto markets. 

The Green List allows a fast-track exchange approval without lengthy reviews, effectively placing SHIB beside Bitcoin and Ethereum in compliance status.

Additionally, Japan’s push toward a 20% flat tax for approved digital assets introduces better conditions for traders who previously faced burdens reaching 55%.

This shift increases SHIB’s attractiveness in a market known for high retail engagement. 

As regulatory clarity improves, SHIB gains a strong legitimacy boost that may influence long-term adoption while supporting short-term sentiment.

SHIB rebounds as bulls defend the $0.0000088 support

SHIB attempts a recovery after buyers firmly defended the $0.00000883 support region, forming a steady bounce on the daily chart. 

The structure now shows a controlled upward drift toward $0.00001029, marking the first meaningful resistance ahead. 

Furthermore, the RSI rests near 39, signaling fading downside strength and potential momentum building at lower levels.

Buyers now eye a push toward $0.00001118, a zone that triggered previous rejections. However, SHIB must maintain higher lows to sustain this move because any breakdown could reset the trend. 

Still, the reaction at support signals resilience, and chart behavior suggests growing confidence from short-term participants.

Source: TradingView

Exchange reserves fall and ease immediate sell pressure

Exchange reserves dropped by 1.42%, indicating that holders continue removing SHIB from trading platforms. 

This behavior reduces the amount of supply available for instant selling and often aligns with quiet accumulation phases. 

Lower reserves also create an environment where demand faces less friction, improving SHIB’s ability to sustain rebounds.

Moreover, the trend shows that whales avoid pushing excess supply into exchanges, which weakens downward pressure. This dynamic complements SHIB’s burn activity and the ongoing defense of local support. 

The combined effect strengthens the broader supply-tightening narrative, helping stabilize price behavior after weeks of volatility.

Source: CryptoQuant

Taker Buy CVD shows buyers regaining short-term control

Spot Taker Buy CVD remains buy-dominant, showing that aggressive buyers actively absorb sell orders during intraday swings. 

This shift highlights improving confidence because buyers choose to lift offers rather than trade passively, which often mirrors strengthening momentum.

Additionally, the CVD structure aligns with SHIB’s rebound from support, signaling that buyers participate consistently during dips. 

This relationship matters because rising buy-side pressure frequently acts as an early signal for continuation patterns. 

Although SHIB still needs stronger confirmation, the behavior across CVD strengthens the argument for a gradual recovery as long as buy-side activity holds firm.

Source: CryptoQuant

Can SHIB sustain this improving momentum?

SHIB now benefits from multiple supportive factors—strong burn acceleration, major regulatory clarity from Japan, lower exchange reserves, and renewed buy-side strength through CVD. 

These elements improve short-term sentiment and support the rebound from $0.00000883. 

If buyers maintain pressure, SHIB can challenge $0.00001029 and possibly $0.00001118, giving bulls a clearer path to extend this recovery structure.