Key Insights:
- Shiba Inu’s price forms a bullish falling wedge pattern, signaling a potential breakout.
- The burn rate surged 34.24%, reducing the circulating supply.
- 74% of SHIB holders are long-term investors, showing strong commitment.
Shiba Inu price is currently trading at $0.00001271, reflecting a 1.55% decline in the last 24 hours. Despite this, technical indicators suggest a possible price reversal. The token has formed a falling wedge pattern, which is often seen as a bullish signal. At the same time, SHIB’s burn rate has surged by 34.24%, reducing the circulating supply and increasing investor interest.
Shiba Inu Price Falling Wedge Pattern Signals Possible Breakout
Shiba Inu’s price action indicates a falling wedge pattern, which is typically a bullish reversal signal. At present, the support level lies at about $0.00001200 and the first resistance level is close to $0.00001500. A rise above resistance may indicate an upwards reversal, and the price may surge.
Technical indicators support this outlook. The Relative Strength Index (RSI) is currently 35.10, approaching the oversold region. If buying pressure increases, the price could rebound. If price goes up there will be buying pressure, which could rebound price.
However, selling pressure is still strong as the Cumulative Volume Delta (CVD) is at -1.29T. Finally, the Moving Average Convergence Divergence (MACD), being negative, shows a bearish momentum, however, a crossover may imply a change towards a bullish momentum.
Total open interest (OI) for SHIB has also increased 6.65% in the last 24 hours, indicating growing market activity which could mean increasing speculation on SHIB. A rising OI accompanied by bullish price action indicates a possible rally, whereas a falling price accompanied by rising OI could be the result of short squeeze, accumulation of short positions.
Shiba Inu Burn Rate Increases, Reducing Circulating Supply
In the last 24 hours, the SHIB burn rate has gone up by 34.24%, more than 20.7 million tokens have been burned. This in turn takes tokens out of circulation with the purpose of creating scarcity and enabling long term price growth.
Out of 999.98 trillion total initial supply of Shiba Inu, 410.74 trillion have already been burned. At present, there is 584.34 trillion in circulation and 4.91 trillion SHIB has been staked as xSHIB. If the demand causes an increase, the rise in burn activity might well positively influence the price of the token.
On-Chain Data Shows Long-Term Holders Remain Committed
Even though SHIB’s prices went high then low recently, 74% of holders still have indicative strong long term confidence in the token, as per the long term holders. While around 23% of the holders have held onto SHIB for a year and 12 months, 3% of the holders fall in the category of short term traders who have held onto their positions for less than a month.
Large investors still control the market, as they are the owners of 74% of SHIB. The level of concentration indicates that whale movements could greatly affect the price action.
Market Trends and Future Outlook
Currently, SHIB’s price correlation with BTC is 0.75 which means that it often adheres to BTC’s movements. Shiba Inu could mimic Bitcoin to witness such a transfer if Bitcoin outperforms.
On the chain, large transactions of $207.88 million scurried in the past seven days. This is institutional interest or whale accumulation. SHIB’s Telegram community has dropped by 0.30% which might indicate that retail investors are losing interest.
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.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.