Key Insights:
- Shiba Inu price chart pattern points to a 22% rebound soon.
- The rebound will happen even as the burn rate plunges.
- SHIB’s exchange balances have fallen as smart money investors buy.
Shiba Inu price rose for the third consecutive day, hitting its highest level since August 24 this year. Its contrarian technicals point to a strong rebound, potentially to the July high of $0.00001585, which is about 22% above the current level.
Shiba Inu Price Rises as Burn Rate Plunges
SHIB, the biggest meme coin in the Ethereum network, has been one of the worst-performing tokens this year as it plunged by over 60% from its highest level in November. This plunge has erased billions of dollars in value.
Still, technical analysis points to a potential rebound even as its burn rate deteriorates. Data compiled by Shiburn shows that the daily burn rate plunged by 94% in the last 24 hours to 70,153. Using the current Shiba Inu price, the value of these tokens was just $0.93, an insignificant amount for a cryptocurrency valued at over $7 billion.
One reason for the low SHIB burn rate is that Shibarium’s layer-2 network has not achieved its goal. One of the initial goals was for the fees collected by Shibarium to be converted from BONE to SHIB and then incinerated.
Data compiled by ShibariumStats shows that, while the number of transactions has jumped sharply recently, the amount of money it is making is limited. It generated about 28.57 BONE tokens in fees in the last 24 hours, equivalent to less than $1.
SHIB Price Technical Analysis Points to a Rebound
Technical analysis shows that the SHIB price could be on the verge of a strong bullish breakout in the coming days, potentially to $0.00001585.
The daily timeframe chart shows that the coin has formed a double-bottom pattern at $0.00001020, its lowest level in April and June this year.
Its neckline is $0.00001757, its highest swing on May when cryptocurrencies rallied. A double-bottom is one of technical analysis’s most popular bullish reversal chart patterns.
The other bullish factor is that SHIB price has formed a symmetrical triangle pattern with two lines now about to converge. A breakout normally follows this triangle in either direction, and chances are it will break out in the upper one.
Technical indicators are also highly supportive of the bullish SHIB price outlook. It has already moved slightly above the 50-day Exponential Moving Average (EMA), a sign that bulls are taking over.
Meanwhile, the Relative Strength Index (RSI) indicator has pointed upwards and moved above the neutral level of 50. The two lines of the MACD indicator are also about to jump above the zero line.
Therefore, the price action patterns and the technical indicators suggest that the coin will rebound in the coming days. A drop below the key support at $0.00001020 will invalidate the bullish forecast.
Smart Money Buying and Falling Exchange Balances
Two of the main catalysts for the SHIB price is that smart money investors have continued buying in the past few months. Nansen data shows that these investors hold about 9.98 billion tokens, a 62% increase from last month.
The other bullish catalyst for the SHIB price is that the supply on exchanges has been on a freefall in the past few months. There are now 283.19 trillion tokens, down from 290 trillion tokens on the same day in August. Crashing exchange balances are a sign that investors are not selling, which is a bullish sign.
Shiba Inu price has crashed and it continues to underperform other top meme coins like Pepe and Dogecoin. However, a closer look at its technicals suggests that the coin could be on the verge of a strong bullish breakout, potentially to the July high. A move above that level will point to further gains to $0.00001750, its highest level on May 12.
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.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
