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Shiba Inu Coin Price Skyrockets: What’s Driving The Gains?

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Shiba Inu Coin Price Skyrockets: What’s Driving The Gains?
  • A Dubai real estate firm recently accepted Shiba Inu.
  • SHIB price stayed at a pivotal moment and could see a rebound.

Once again, the Shiba Inu coin price has risen by another course as it has achieved a new milestone regarding adoption. SHIB continues to enjoy increased acceptance as a payment medium with a Dubai-based real estate firm.

Source: X
Source: X

The firm said they would start accepting the meme coin for the property. This news is a good move for SHIB, which seeks to go beyond being a meme coin.

However, considering the bullish adoption news, the Shiba Inu price has not performed well. Moreover, the token is even at the bottom of bear markets.

At press time, the Shiba Inu coin price traded at $0.00002111, noting an intraday rise of over 2.11%. It showed a rebound from the 200-day EMA mark. Its market cap soared to $12.43 Billion, ranking 15th among the top crypto coins.

SHIB Replicates Bullish Signals: Will It Recover Recent Losses?

In a recent post on X by Javon Marks, the Shiba Inu price ended the year with a significant breakout. Furthermore, the token showed a bullish signal.

Source: X
Source: X

If the bullish pattern is broken out, the prompt targets are $0.00008100, and the bullish continuation pattern can be continued. Moreover, it showed a hidden bullish divergence on the weekly timeframe.

Source: X
Source: X

Prominent crypto analyst Ali Martinez highlighted crucial Shiba Inu coin price levels. He pointed out that the SHIB has an immediate support zone of $0.00002150 and $0.0000193. The range is critical for SHIB to maintain ongoing momentum to avoid further declines in the short term.

SHIB Burn Movement: Redefining Market Potential

Data from Shibburn showed that the Shiba Inu burn rate spiked a massive nearly 89%. With this, 1.3 Million tokens burned within 24 hours.

Burn Rate | Source: Shibburn
Burn Rate | Source: Shibburn

Typically, reducing supply should make an asset more valuable. However, for SHIB, this only happens when there is a simultaneous increase in demand.

The recent price correction indicated waning demand but has reached its bottom. Also, the rising burn rate could fuel SHIB’s value unless interest declines. Moreover, data from Messari showed that SHIB’s Sharpe Ratio was -3.73 on 1 January, coinciding with a recent price drop.

Sharpe Ratio | Source: Messari
Sharpe Ratio | Source: Messari

The risk-to-reward ratio for buying SHIB was favorable for entering the upside rally in the coming days.

Shiba Inu Price Prediction: Is a Rebound Toward $0.00003000 on the Horizon?

On the daily chart, the SHIB Inu coin price has been trading within a narrow range for the past two weeks. Moreover, it remained close to the 200-day EMA mark.

The upper trendline was still a barrier, and bulls have had a challenge crossing it for the past few sessions. If the trendline breaches above $0.00002500, the Shiba Inu price could see further upward movement.

SHIB Price Chart | Source: TradingView
SHIB Price Chart | Source: TradingView

However, the On-Balance-Volume (OBV) line still sailed below the midline zone. It conveyed a lower accumulation trend. Moreover, the Relative Strength Index (RSI) line was near the oversold zone, and a significant bounceback could be seen in the coming days.

Furthermore, the Open Interest (OI) has risen over 2.32% to $52.83 Million. This indicated prolonged buildup activity in the past 24 hours. The Bulls defended the 200-day EMA mark. A chance of bounceback toward the 20-day EMA mark was possible for the relief rally in the coming sessions.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

K
Written by
Markets Writer

Krystian Bielanski is a markets and cryptocurrency writer contributing to The Market Periodical, covering Bitcoin, altcoins and broader market analysis.

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About this article

PublishedJanuary 1, 2025 5:19 pm
Last updatedJanuary 20, 2025 9:52 pm
Written byKrystian Bielanski, Markets Writer
ReviewedFact-checked by the TMP editorial desk

This report follows our Editorial Policy, Fact-Checking Standards and Code of Ethics. Found an inaccuracy? See Corrections.

Disclaimer. Informational only, not financial advice. Crypto, forex and stocks are volatile, high-risk assets — always do your own research and consult a qualified adviser.

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