Shiba Inu price continued its strong rebound on Monday, July 21, as Ethereum and the burn rate soared.
Shiba Inu (SHIB) token rose for seven consecutive days, reaching its highest level since May 23, and 55% from its lowest point this year.
The token rally coincided with the ongoing surge in Ethereum (ETH). Ethereum soared to $3,800, its highest level since December last year, and 175% above the year-to-date low. ERC meme coins, such as Shiba Inu and Pepe (PEPE), often surge when Ethereum is in a strong uptrend.
The Shiba Inu price also jumped as the burn rate continued to rise, reducing the number of tokens in circulation. Its burn rate rose by 11.30% in the last 24 hours to 1.195 million tokens, reducing the circulating supply to 584.5 million.
The SHIB price also soared as whales continued to accumulate. The holdings of the top 100 coins continued soaring to their highest point in months. Similarly, whale holdings jumped to 112.17 billion, up by 2.8% in the last 30 days. Their holdings have moved from this month’s low of 105 trillion.
At the same time, exchange balances have continued falling, a sign that investors are not selling. Their holdings have dropped to 275.4 trillion, down by almost 1% in the last 30 days.
Shiba Inu price technical analysis
The daily timeframe shows that the SHIB price bottomed at $0.000010, where it formed a double-bottom pattern. A double bottom is one of the most common and accurate bullish reversal patterns, and it is now approaching the neckline at $0.00001755.
SHIB has also retested the 23.6% Fibonacci Retracement level and moved above the 50-day and 200-day moving averages. The spread between the two moving averages is narrowing, raising hopes that it will form a golden cross pattern.
Furthermore, the Supertrend indicator has turned bullish, while top oscillators, such as the Relative Strength Index and the MACD, have all pointed upward.
Therefore, the token will likely continue rising as bulls target the neckline at $0.00001755, followed by the 50% retracement point at $0.00002180. A drop below the support at $0.00001453 will invalidate the bullish view.
