Key Insights:
- SHIB burn rate up 364%, with 330M tokens removed in a week, fueling bullish hopes.
- SHIB price forms head and shoulders, aiming for a breakout above $0.00001550.
- Trading volume surged 165% to $407M, supporting strong short-term upside.
Shiba Inu (SHIB) price is attracting market interest. The meme coin is creating a head and shoulders (H&S) shape. This classical pattern is usually indicative of trend reversal if ratified. SHIB’s burn rate is also increasing, as are trading volumes.
Shiba Inu Burn Rate Surges as 330 Million SHIB Removed
SHIB’s burn rate has surged in recent weeks. The network burned 330 million tokens in the past week. This marks a 364% increase, according to data from Shibburn. Token burns reduce the circulating supply, potentially boosting long-term value as demand grows.
Token burns are an integral part of Shiba Inu’s strategy. They strive to cut down the huge token supply to create scarcity. Such a situation can also raise the value of every left token as long as demand is high. The most recent burn was one of the largest this season. It indicates that the SHIB community is increasingly committed to a deflationary model.
Decreasing the circulating supply is in line with the project’s long-term objectives. It underpins the attempt to remove more zeros from the SHIB price. This strategy is important to the Shiba Inu ecosystem’s core value. It also distinguishes SHIB from other meme coins that usually do not have a structured tokenomics plan.
Technical Analysis Points to Potential Breakout
Technically, the SHIB price form a head and shoulders pattern. This pattern contains a left shoulder, a head, and a right shoulder. The neckline is around $0.00001550. The critical resistance level is where SHIB needs to budge through the resistance to confirm the breakout.
A breakout beyond this neckline should push SHIB price to the $0.00003343 target. Notably, this target corresponds to the upper level of the descending channel. This channel has represented SHIB price for months. Breaking this level may suggest a big trend reversal.
The latest TradingView analysis from RockyBullCrypto has identified this setup. It indicated that SHIB price is about to reach a critical breakout point. Such a trend often signals a shift in market sentiment. This means that there is a possibility that buyers will be in the upper hand after a long downtrend.
Trading Volume Spikes as Bullish Sentiment Grows
SHIB’s trading volume has also surged. The 24-hour trading volume recently reached $407 million. This is a 165% increase, according to CoinMarketCap. High trading volumes are an important indicator of market interest. They create the liquidity necessary to propel the prices higher.
This surge in volumes reflects new interest in SHIB. It limits the possibility of fake breakouts confirmed by the buyer’s interest. It also underpins a more stable price regime, altogether offsetting volatility.
The value of SHIB’s market cap is now $8.75 billion. The token is currently worth $0.00001486 at market value, showing 10.97% daily growth. These figures can indicate the increasing interest of SHIB from traders, knowing there will be further upside.
Historical Trends Support Bullish Case
In the past, May has been a good month for SHIB. Cryptorank data revealed that SHIB price has averaged a 61% gain in May over the last four years. This includes a 355.4% increase in May 2021 and 13% increase in May 2024. These historical trends act as a solid foundation for the current rally.
This seasonal momentum might drive additional buying pressure. It also suggests that SHIB might continue its uptrend this month. However, traders should watch for resistance near the neckline. The level has previously halted SHIB’s breakout attempts. Clearing this level is critical for sustained upside.
The general environment of the market is also positive. There has been increased retail and institutional interest in meme coins. The development of the Shibarium Layer-2 scaling solution has increased community confidence. This optimism can sustain additional gains provided the current trends are sustained.
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.
