After a prolonged period of decline, Shiba Inu (SHIB) is finally showing signs of recovery, thanks in part to a remarkable surge in its burn rate. Over the past 24 hours, the burn rate skyrocketed by an astonishing 10,785%, effectively removing over 120,000 SHIB tokens from circulation. This significant reduction in supply has not only captured the attention of traders and analysts alike but also set the stage for a potential price rebound.
Currently, Shiba Inu is trading at $0.00000990, reflecting an increase of 4.29% within the last day. The uptick in price follows a rebound from a key demand zone, which has historically served as a strong support level for the token. This newfound momentum suggests that buyers are beginning to regain control, positioning SHIB to challenge higher resistance levels.
Despite trading within a descending channel on the daily chart, the recent upward price movement indicates a shift in market sentiment. The support level near $0.0000095 has proven resilient, halting several declines and demonstrating robust buying interest. The price action has been characterized by smaller candles, typically indicative of a pause in selling pressure. As traders await a decisive move, SHIB must break above the critical resistance of $0.00001117 on a daily close to maintain this bullish trend.
Should SHIB surpass this resistance point, traders may set their sights on the next targets at $0.000013 and $0.000016, both of which have served as formidable barriers in the past. A breakout above these levels could pave the way for substantial gains.
Adding to the bullish sentiment is the recent surge in Shiba Inu’s burn rate. The dramatic rise in burning activity has sparked renewed interest in the token, particularly during periods of market stagnation. While the number of tokens burned may be relatively small compared to SHIB’s total supply, such events often act as catalysts for short-term market movements.
Shiba Inu’s community has played a crucial role in driving these burn campaigns, demonstrating their commitment to the token’s long-term value. This active engagement is vital, especially when price action stalls, as it helps maintain interest in SHIB and encourages further accumulation among holders.
In recent days, price movements have indicated a steady accumulation phase. Traders are strategically buying during dips, ensuring that SHIB remains above its recent lows. This behavior often signals that traders are positioning themselves ahead of a potential breakout. Furthermore, the narrowing of price swings suggests that market volatility may decline before a significant price move occurs.
While the technical indicators still show a descending channel, the recent bounce could represent the initial signs of a shift in market dynamics. If SHIB can hold its current support and volume increases, it may soon test the upper bounds of this pattern.
Ultimately, for a full trend reversal, the token will need to break free from its current structure and close above key resistance zones. Until that happens, traders remain vigilant for further confirmation of the recovery.
The immediate focus for SHIB is the $0.00001117 resistance level. A successful break above this threshold could trigger a rally towards $0.000013 and $0.000016. It is imperative for buyers to sustain momentum and defend critical support zones to keep the recovery trajectory intact. Any substantial rejection at higher levels could lead to increased consolidation or a revisit to the demand zone.
If accumulation trends continue alongside active community efforts like token burns, Shiba Inu may very well remain on track to challenge these higher resistance levels. As the market watches closely, the forthcoming breakout could confirm the anticipated recovery path towards $0.000016.
