Shiba Inu [SHIB] has captured attention with a significant 6,223% increase in its burn rate and a remarkable price recovery. Currently, SHIB is trading at $0.00002521, indicating a slight 1.25% drop in the last 24 hours.
Despite this minor pullback, SHIB is approaching a crucial resistance level, backed by strong technical indicators and active on-chain behavior. The main question remains: Will SHIB manage to overcome this resistance and maintain its upward trajectory?
Convergence of Technical Indicators Favors SHIB’s Potential Upsurge
A closer look at Shiba Inu’s daily chart reveals a formation of a golden cross pattern, where the 50-day moving average has crossed above the 200-day moving average. This bullish pattern typically signals an extended period of upward momentum.
Currently, SHIB is confronting a significant resistance level at $0.00002275, previously a major support level. A breakthrough above this point could pave the way for SHIB to target $0.00004, a level not seen since its earlier highs.
The Relative Strength Index (RSI) is currently at 66.26, indicating strong buying activity. While this suggests optimism, traders need to exercise caution as RSI approaching overbought levels may hint at a potential correction.
Nevertheless, if buyers maintain their pressure, SHIB could uphold its rally and establish a firmer price base.
Positive Shift in On-Chain Activity Signals Favorable Standpoint
Analysis of Shiba Inu’s on-chain data illustrates a significant 50.91% positive price-DAA divergence. This observation underscores escalating network activity as SHIB’s price climbs, indicating heightened user participation.
Historically, such disparities align with positive price movements, reflecting an increased investor trust in the asset.
Furthermore, the exchange reserves for Shiba Inu have decreased by 0.46% in the past 24 hours, now totaling 138.75 trillion tokens. This reduction implies decreased selling pressure, hinting at a strong accumulation phase.
Consequently, a decrease in tokens on exchanges boosts SHIB’s potential for a sustained rally.
Market Sentiment Indicates Substantial Interest
The overall market sentiment towards Shiba Inu remains upbeat, with a 4.85% rise in open interest, now reaching $101.71 million. This surge in open interest underscores increased speculative trading and growing confidence in SHIB’s upward prospects.
Therefore, the alignment of positive sentiment and technical indicators sets the stage for a potential breakout.
Shiba Inu appears well-positioned for further advancement, supported by the golden cross formation, reduced exchange reserves, and positive on-chain divergence. Upon decisively surpassing $0.00002275, SHIB’s next target could be $0.00004.
Nevertheless, traders must remain vigilant as resistance levels and nearing overbought RSI conditions could pose short-term obstacles. Currently, Shiba Inu seems prepared to sustain its upward momentum.