Shiba Inu [SHIB] is experiencing a shift in market sentiment following a surge in bullish price action and a notable increase in its burn rate. Another significant catalyst backing the meme cryptocurrency is the overall market recovery.
Recent Token Burning Activity by Shiba Inu
Recent data from Shibburn, a blockchain transaction tracker, revealed that the SHIB community has burned a substantial amount of tokens, with 16,479,283 SHIB burnt in the last 24 hours and a total of 61,082,353 SHIB over the past week.
Token burning involves permanently removing tokens from circulation to support long-term value appreciation and manage inflation.
This considerable burn rate has the potential to create buying pressure and fuel additional upward momentum.
Price Movement and Significant Levels
At the time of writing, SHIB was trading around $0.0000165, marking a 5.10% increase over the last 24 hours.
This price uptick breached a crucial resistance level that SHIB had been testing for an extended period, resulting in an 80% surge in trading volume.
This resistance level represents the neckline of an ascending triangle pattern that SHIB successfully broke on the four-hour timeframe and is currently undergoing a retest.
With recent price developments and historical trends in mind, a successful retest above $0.000017 could confirm bullish momentum, potentially paving the way for an 18% upswing towards $0.000020.
Significant Liquidation Thresholds
Given the prevailing market sentiment and the recent breakout in SHIB, intraday traders are showing a preference towards bullish positions, as indicated by insights from on-chain analytics provider Coinglass.
Currently, long position holders are heavily leveraged at $0.0000154, with open positions totaling $2 million, acting as a robust support level.
On the other hand, short position holders are heavily leveraged at $0.0000176, with $940K worth of positions, representing a crucial resistance level for the meme coin.
These open positions could potentially face liquidation if SHIB experiences significant price movements in either direction.
Nevertheless, given the optimistic sentiment and on-chain data, it seems that bulls are currently dominating and could trigger the liquidation of short positions if SHIB’s upward trajectory continues.