Shiba Inu (SHIB) has captured attention again, as it shows signs of potentially massive growth. Despite recent setbacks, a surge in the burn rate and an intriguing technical pattern have sparked optimism among traders and analysts alike. Let’s dive into what’s happening with SHIB and what could come next for the meme coin.
Burn Rate Rockets: A Boost for SHIB’s Price?
Shiba Inu’s burn rate has seen an astonishing 531.09% increase in the last 24 hours, with nearly 14 million SHIB tokens being burned. This could be a pivotal moment for the token. While the burn rate has historically been a tool to reduce supply, it could also play a significant role in driving price appreciation—if enough tokens are removed from circulation over time.
However, SHIB’s developers have explained the difficulty of burning tokens from the original protocol. The ERC-20 contract doesn’t have an automatic burn mechanism. This limitation stems from the renouncement of control by SHIB’s creator, Ryoshi, making changes to the protocol impossible without disrupting the entire ecosystem.
Bullish Pattern on the Horizon: 400% Gains?
Despite its bearish performance recently, with SHIB trading below its 20-day EMA at $0.00001355, analysts are hopeful. Jason Marks, a prominent analyst, has pointed out a large Inverse Head & Shoulder pattern on the SHIB chart. This pattern suggests that SHIB could see an explosive rally of up to 400%, with a price target as high as $0.000081.
For this to happen, SHIB needs to regain key levels, including its 20-day EMA at $0.00001570. A sustained move above this level could signal the beginning of a bullish trend.
Market Sentiment and Technical Indicators
Currently, SHIB’s Relative Strength Index (RSI) sits at 31.46, nearing oversold territory. This indicates that a rebound may be on the horizon if buyers step in at these levels. However, unless the RSI rises above 40, any recovery could be short-lived.
On the downside, if SHIB fails to hold support at $0.00001350, the next levels to watch are $0.00001200 and $0.00001050. Selling pressure could push SHIB even lower if it fails to maintain upward momentum.
Is SHIB Ready for a Major Breakout?
Despite the challenges, the increasing burn rate and the potential for a bullish pattern offer hope. If SHIB can hold key support levels and reclaim the 20-day EMA, a rally could be in store. However, it’s crucial to monitor key levels closely and watch for signs of continued buying interest.
In summary, SHIB may be on the brink of a major move. With a 400% price surge potentially in the cards, the next few days could determine whether the meme token can overcome its bearish phase and make a run toward higher prices.
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