Shiba Inu, a widely recognized meme cryptocurrency, has seen a significant price surge concurrently with Bitcoin, the leading digital currency. Bitcoin neared the $64,000 mark on a recent Wednesday, while Shiba Inu’s value soared to $0.0000147. The following day, Shiba Inu traded at $0.000014, marking a dramatic 135% rise from its lowest point in the US for the year 2023, where it stood at $0.0000059.
Token Supply and Burn Rate
Despite Shiba Inu’s burn rate reduction, where no tokens were removed from circulation in the past day, the cryptocurrency maintains a positive trajectory. The Shibburn website confirms the total circulating supply remains at 581 trillion tokens. Crypto enthusiasts recognize token burning as a crucial mechanism for value appreciation, with Shiba Inu having burned 410 trillion tokens to date. Nonetheless, its substantial supply continues to be a hurdle for achieving new price records.
The anticipated Layer 2 scaling solutions and projects like Shibarium are seen as potential boosters for Shiba Inu’s burning initiatives. After breaching a descending trend line resistance, SHIB’s price trajectory seems to have tilted upwards. The token previously encountered resistance at $0.00001, maintaining consolidation around $0.0000092. This level was supported by the 200-day exponential moving average.
Market Trend and Investor Sentiment
Investor sentiment has been buoyed by positive signals from the Moving Average Convergence Divergence (MACD) indicator since early February, hinting at continued price ascension. Traders are eyeing a close above $0.000014, which currently presents instant resistance. If SHIB sustains this level, it could trigger further buying in anticipation of a rise to $0.00002.
However, investors are wary of a potential double-top pattern at $0.000015, which could precipitate a pullback. Despite this, robust buying pressure could cement the ongoing rally. Previously, Shiba Inu tested this resistance in February last year without success, leading to a sharp decline. Should history repeat with a rejection, the cryptocurrency might eye a recovery at $0.0001, with dollar-cost averaging strategies being advisable during corrections.