Shiba Inu [SHIB] has sparked considerable interest among its community lately, driven by an impressive 144,223.06% increase in burn rates. This remarkable surge, alongside a successful breakout from a descending triangle pattern, has rekindled optimism among stakeholders.
Currently, SHIB is priced at $0.00003013, indicating a 4.73% drop in the last 24 hours. Despite this minor decline, the recent price action and increasing community participation suggest a continued bullish outlook for Shiba Inu.
Has SHIB Successfully Overcome Resistance?
SHIB recently broke out from a significant descending triangle pattern. After challenging the $0.00002755 resistance level multiple times, it is now aiming for the next pivotal level at $0.00004495.
This breakout hints at bullish possibilities, but the sustainability of this trend will hinge on its ability to hold above the resistance level.
The Relative Strength Index (RSI) stands at 61.49, indicating moderate bullish momentum without reaching overbought conditions.
Consequently, if Shiba Inu sustains its momentum and breaks through additional resistance levels, further upward movement is plausible.
What Insights Can We Gather from SHIB’s On-Chain Signals?
On-chain data offers valuable information on market sentiment, and SHIB’s on-chain signals present a mixed picture.
The current network growth is down by 0.91%, suggesting a slight decrease in new addresses connecting to the network, potentially signaling reduced retail interest.
However, the “in the money” metric at 1.08% indicates profitable Shiba Inu holders, acting as a bullish signal.
Moreover, large transactions have surged by 2.73%, hinting at potential institutional interest or significant whale activity driving price movements. Despite some bearish metrics, the overall sentiment remains favorable.
What Does Exchange Data Indicate?
SHIB’s exchange reserves have risen by 0.1% in the last 24 hours to 137.7T, indicating a slight increase in liquidity. Higher coin availability on exchanges typically correlates with increased market activity, potentially leading to higher volatility in SHIB’s price movements.
Although this uptick is modest, it signals heightened trading platform activity, which could influence price fluctuations.
How Are Market Participants Responding?
The current Open Interest (OI) and weighted funding rate for SHIB are at 0.0555, indicating a relatively neutral market sentiment. Nonetheless, the positive burn rate and on-chain signals suggest that bullish sentiment might persist.
Can SHIB Sustain Its Bullish Momentum?
Despite the recent downturn, SHIB’s breakout from crucial resistance levels, supported by promising on-chain data and a strong RSI, suggests that the bullish trend remains intact.
However, to maintain its upward trajectory, sustained community enthusiasm and continued whale engagement will be key factors.