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Shiba Inu’s burn rate has surged by 580.76%, dramatically reducing its circulating supply and inciting bullish speculation among traders.
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Despite a slight price decline, the rising burn rate coupled with strong support levels indicates potential for a bullish breakout above critical resistance.
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“If SHIB breaks above $0.00001718, it could ignite a rally towards $0.00002011,” stated a COINOTAG analyst.
Shiba Inu’s burn rate skyrockets by 580.76%, hinting at a potential price surge amid bullish sentiment in the market. Can it sustain the momentum?
SHIB Price Action: Is Momentum Shifting?
Shiba Inu (SHIB) has successfully rebounded from the key accumulation zone of $0.00001290 to $0.00001400, showcasing significant buying interest. Currently, the price is navigating within a descending wedge pattern, which historically hints at an impending bullish breakout.
Traders are closely monitoring the resistance level at $0.00001718; breaking this barrier could propel SHIB towards targets at $0.00002011 and further toward $0.00002415. In the context of momentum indicators, the Relative Strength Index (RSI) at 40.54 suggests approaching oversold conditions, signaling potential upward movement if it crosses the 50 mark.
Source: TradingView
What Does Holder Sentiment Reveal?
Current on-chain analysis shows that a staggering 76.85% of SHIB holders are currently out of money, indicating a prevalent sense of loss among investors. Only 16.48% of addresses are in profit, while a mere 6.67% hover at breakeven. This stark imbalance suggests that if SHIB begins to ascend, many holders may consider exiting positions at breakeven, potentially creating resistance zones.
Interestingly, as the burn rate continues to diminish supply, the decreased availability of tokens could lead to greater scarcity, pushing prices upward. Should Shiba Inu manage to sustain its upward momentum, an increase in profitable holders could further drive bullish sentiment.
Source: IntoTheBlock
SHIB Total Liquidations: Are Bears Losing Control?
Recent liquidation data indicates that $80K in long positions were liquidated, vastly overshadowing the $19.73K in short positions liquidated. This disparity demonstrates that bullish traders remain actively engaged in the market. Should SHIB succeed in breaking through key resistance, it may trigger further short liquidations, enhancing the potential for a considerable price rally.
Conversely, if the price lingers below resistance, selling pressure from trapped holders and short sellers could lead to a downturn. Thus, confirming a breakout is essential for achieving sustained bullish momentum.
Source: Coinglass
Shiba Inu Bulls vs. Bears: Who Has the Upper Hand?
The ongoing market dynamic exhibits a nearly equal distribution of bulls and bears, with a count of 126 bulls against 127 bears observed in the last week. This equilibrium reflects uncertainty; however, the recent spike in burn rates may tilt the balance in favor of buyers.
Maintaining support levels while breaking above $0.00001718 could signal a bullish shift for Shiba Inu. On the flip side, should selling pressure intensify, bears may regain control, potentially leading to further consolidation or a decline back to the $0.00001290 range.
Source: IntoTheBlock
Can the Burn Rate Boost Shiba Inu’s Price?
The substantial surge in SHIB’s burn rate has dramatically decreased the circulating supply, creating a potentially bullish catalyst for the cryptocurrency. However, for the momentum to sustain, the price action must confirm with a decisive breakout above the $0.00001718 level.
If buying pressure escalates, we could witness SHIB rallying towards the $0.00002011 resistance level. Conversely, continued resistance could stifle upward movement and hinder potential gains.
