Over the past 24 hours, the burn rate of Shiba Inu’s token has experienced a significant surge of 580.76%, leading to a considerable decrease in the available supply. Currently, SHIB is being traded at $0.00001591, showing a slight decline of 1.58% in the last day.
Despite the drop in value, the heightened token burn rate and the establishment of strong support levels have caught the attention of traders who now anticipate a potential resurgence in price. Could this surge in burn rate be the catalyst for a bullish upturn for SHIB?
Analyzing SHIB’s Price Movement: Is there a Shift in Momentum?
SHIB has bounced back from its recent consolidation range of $0.00001290 — $0.00001400, indicating a notable interest from buyers. The current price action is confined within a descending wedge pattern, which historically hints at a possible bullish breakout.
A breach above the $0.00001718 mark might trigger a rally towards $0.00002011, encountering further resistance at $0.00002415.
As of now, the Relative Strength Index (RSI) stands at 40.54, indicating that SHIB is approaching oversold territory. An RSI move above 50 could signal a growing bullish trend. However, a failure to maintain support could lead to a retesting of lower levels, delaying any potential upward movement.
Exploring Holder Sentiment: What Does it Indicate?
On-chain data suggests that 76.85% of SHIB holders are currently at a loss, with only 16.48% in profit and 6.67% at breakeven. This data misbalance implies that if SHIB starts to rise, many holders might consider selling at breakeven or minimal profit levels, creating potential resistance zones.
Despite this, the significant decrease in supply due to the burn rate surge might increase scarcity, potentially pushing prices higher. Sustained positive momentum could lead to a rise in the percentage of profitable holders, reinforcing a bullish sentiment.
SHIB’s Total Liquidations: Are Bears Losing Ground?
Data indicates that $80K worth of long positions were liquidated compared to $19.73K in shorts, highlighting the continuous activity of bullish traders. If SHIB manages to break through key resistance levels, further liquidations on short positions could fuel a more substantial price rally.
However, without a breakout confirmation, potential selling pressure from trapped holders and short sellers might drive Shiba Inu’s value down. Therefore, a confirmed breakout is essential for maintaining a bullish trend.
SHIB Market Battle: Bulls Versus Bears
During the last week, the market has seen a close competition between bulls and bears, with 126 bulls and 127 bears. This almost equal balance indicates uncertainty in the market. However, the recent surge in burn rate could potentially shift the balance in favor of buyers.
If Shiba Inu manages to uphold its support levels and surpass $0.00001718, it could indicate a positive turn of events. Conversely, heightened selling pressure might allow bears to take control, leading to further consolidation or a decline towards $0.00001290.
Impact of Burn Rate on Shiba Inu’s Price
The substantial surge in SHIB’s burn rate has significantly decreased the available supply, acting as a bullish catalyst. Nevertheless, for this momentum to materialize, price action needs to confirm a breakout beyond $0.00001718.
If the buying pressure strengthens, SHIB could aim for a rally towards $0.00002011. Conversely, persistent resistance may delay any upward movement.