The Shiba Inu token, a well-known meme-based cryptocurrency, has recently recorded a 50% increase in value over the span of a week, marking its most substantial weekly growth since early February, with a peak value of $0.00001425. This rise follows a previous uptick to $0.00001193 in December, which was driven by the market’s optimistic reaction to the potential approval of Bitcoin ETFs.
Market Trajectory and Resistance Levels
Facing challenges like many of its peers, Shiba Inu saw its value dip below $0.00001 in January due to market volatility. It then experienced its lowest exchange rate of $0.0000082 in 2024, preceding a phase of stability. Recently, the token’s value reached a remarkable $0.00001467. Market watchers are now observing whether SHIB can consistently exceed the immediate resistance level of $0.000014 to confirm the continuation of its upward trend.
Indicators such as the Relative Strength Index (RSI) suggest a bullish outlook, with potential entries into the overbought zone signaling further price hikes. This could prompt more purchases from investors who anticipate a breach of the $0.000015 mark. The Moving Average Convergence Divergence (MACD) indicator also hints that SHIB’s surge may persist.
Token Burn Implications and Moving Averages
The token’s recent buy signal has fortified its upward momentum, encouraging investors to either accumulate more or hold on to their existing SHIB holdings. Furthermore, Shiba Inu is poised to outperform significant moving averages, potentially solidifying a bullish pattern if these averages continue to trail the token’s price.
Concurrently, the SHIB burn rate has shown volatility, with a substantial 30,000% increase followed by a drop to zero. Despite a current 63% decline in the burn rate, resulting in 1 million SHIB being burned recently, it remains challenging to attribute a direct cause. To date, 410 trillion tokens have been burned, decreasing the active supply to 581 trillion. Token burning, which entails removing tokens from circulation permanently, can significantly alter the project’s market dynamics.