- Shiba Inu is once again capturing the attention of crypto enthusiasts with recent technical patterns of a breakout.
- In just the past two days, SHIB has seen an influx of 160 billion tokens, an average of 80 billion per day, which could be a signal that most people are overlooking.
Shiba Inu (SHIB), the second largest meme coin after Dogecoin (DOGE), is showing signs of a potential breakout after a lengthy bearish trend. Since SHIB’s all-time high of $0.00008845 in 2021, the token has been on a downtrend marked by a series of consecutively declining highs and decreasing lows.
Its current price action indicates a low-key recovery. SHIB is currently at around $0.0000122, having recovered above the 20-day simple moving average (SMA) and in the process of testing the 50-day SMA at $0.000013. A break above this level would see the price move toward the 100-day SMA at $0.00001576 and, ultimately, the 200-day SMA at $0.00001898. Meanwhile, its 14-day Relative Strength Index (RSI) stands at 46.76, meaning that the asset still has some room to rally before it is overbought.
Adding to the upbeat atmosphere, Heikin Ashi candles in the day chart are gradually turning green, an indication of upbeat market sentiment. Accumulation/Distribution Line (ADL) also points toward relief from selling pressure, a possibility of an accumulation phase by the investors. SHIB is now trending over the 20, 50, and 100-hour SMAs, breaking above the level of resistance for the 50-hour SMA.
Key Levels to Watch
SHIB is currently standing at the crossroads of a critical juncture, with several point prices as challenges and as protectors. On the upside resistance side, SHIB has near-term overhead pressure at $0.00001283, which aligns with the 50-day simple moving average (SMA), and then at $0.00001576 at the 100-day SMA, and the more ambitious one at $0.00001898.
On the other hand, firm support is at the psychological level of $0.00001000 and a secondary demand zone from $0.00001050 to $0.00001100, which has previously capped declines in price. Short-term-wise, a strong close above $0.00001260 could initiate a rally to the $0.00001330 level.
As the technical environment changes, so does on-chain behavior. SHIB burn rate has fallen by a whopping 95% with merely 964,247 coins burnt in the last 24 hours,according to data from Shibburn. The drop could be a signal of a slowing market or maybe it is a strategic move by investors who are choosing to HODL expecting an eventual price breakout.
However, as the burn rate is reduced, SHIB derivatives trading volume is up by 33.16% to $119.32 million, and open interest is up by 4.71% to $122.94 million. Underpinning this is an explosion in whale activity, as 160 billion SHIB tokens have been put into wallets in only two days, reflecting accumulation and rising demand.
There is positive sentiment emerging in the outlook. According to Coincodex estimates, SHIB could be on its way to a behemoth 331% surge by September 2025, with a lower target at $0.00001991. Only time will tell if such a forecast materializes, depending on how SHIB will break through its existing technical limitations and if the on-going accumulation will translate into lasting bullish pressure.
Credit: Source link
