- SHIB’s burn rate surge aligns with historical trends, driving positive momentum and investor interest.
- Price breakout and increased network activity hint at a strong potential rally above resistance.
Shiba Inu’s [SHIB] burn rate has skyrocketed by 1500%, significantly cutting down its circulating supply and reigniting enthusiasm among investors.
This sharp increase aligns with a trendline breakout and retest on the weekly chart, further fueling speculation about a potential bullish breakout.
At press time, SHIB was trading at $0.00002289, up 2.02% over the last 24 hours. The recent developments suggest an optimistic outlook, but key resistance levels remain crucial for determining the token’s future trajectory.
Historical context: Past burn rate trends and their impact
Past burn rate spikes have often correlated with SHIB’s price movement, as analyzed by AMBCrypto. For instance, last week’s massive 7418% increase briefly boosted SHIB’s price by 15%, only for it to decline by over 3% due to profit-taking.
This demonstrates that while burn rate spikes can generate short-term bullish sentiment, they often lead to volatility.
Similarly, SHIB’s current burn rate increase appears to be driving positive momentum, but sustaining it will require broader support from the market and investors. Therefore, understanding historical trends is crucial for predicting SHIB’s next move.
Price action analysis: Is SHIB ready to break out?
SHIB has confirmed a trendline breakout and retest, indicating strong potential for upward movement.
Bollinger Bands on the weekly chart suggest price compression, hinting at an imminent breakout, while the Stochastic RSI indicates room for additional growth before reaching overbought levels.
Additionally, SHIB faced a key resistance level at $0.00003338, which will be critical for determining its near-term direction. If this level is breached, the token could gain significant momentum; however, failure to do so may lead to further consolidation or declines.
Source: TradingView
SHIB active addresses and growing engagement
Active addresses for SHIB have risen by 1.44% over the past day, indicating increased interest among network participants. Historically, such upticks in engagement have often preceded price rallies, providing a strong indicator of growing confidence in the token.
Additionally, this increase aligns with heightened transaction activity, suggesting that SHIB is gaining traction among both traders and long-term holders.
Source: CryptoQuant
Transaction count and exchange reserves analysis
The memecoin’s transaction count has increased by 1.56%, further highlighting growing activity on the network. Additionally, exchange reserves have decreased slightly by 0.08%, signaling a preference among investors to hold their tokens rather than sell.
This reduction in selling pressure creates a favorable environment for potential price increases, adding to the positive outlook.
Source: CryptoQuant
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Conclusion: Can SHIB ignite a rally?
Shiba Inu’s surging burn rate, increased network activity, and a confirmed breakout set the stage for a potential rally. However, breaking through the key resistance level at $0.00003338 is crucial for sustaining upward momentum.
If SHIB can maintain its current trajectory and capitalize on market enthusiasm, a significant rally is likely on the horizon.
