Peter Smith
Shiba Inu token shows promising momentum with 8.6% weekly growth as it approaches the crucial $0.000013 resistance level, supported by increased trading volume and significant token burns.
Shiba Inu (SHIB) Tests Key Resistance as Momentum Builds
According to CoinMarketCap data, SHIB has climbed by 1.94% over the past 24 hours, bringing its trading price to $0.00001292. The popular meme coin reached as high as $0.00001296 in earlier trading sessions before encountering resistance at the $0.000013 mark. This price action continues the upward trend that began after SHIB successfully flipped the $0.000012 support level.
For the meme token to break through this critical resistance level, it will need to gather significant momentum. This will likely require increased ecosystem support through token burning initiatives and a substantial boost in overall trading volume, both of which appear to be materializing based on recent data.
SHIB (Shiba Inu) Trading Volume Signals Renewed Investor Interest
Notably, investor activity has picked up during this gradual climb toward the key resistance level. SHIB's trading volume has registered an impressive 14.44% increase, reaching $173.83 million. This uptick in trading activity suggests growing interest and engagement from SHIB holders, which could provide the necessary momentum for breaking through the resistance.
Meanwhile, the SHIB ecosystem has intensified its deflationary mechanism through accelerated token burns. As recently reported by U.Today, the SHIB burn rate witnessed a remarkable 3,227% increase, resulting in the removal of 888.4 million SHIB tokens from circulation. This significant burn activity was executed via the ShibTorch platform, demonstrating the community's commitment to the token's long-term value proposition.
Shiba Inu (SHIB) Burn Rate Skyrockets as Part of Deflationary Strategy
The ecosystem's internal mechanism for regulating supply and potentially increasing value involves the strategic burning of tokens to reduce the total supply. The recent rekindling of burn activities to massive levels represents a concerted effort by the community to support price appreciation through supply reduction.
These burns serve as a fundamental aspect of SHIB's tokenomics, designed to counterbalance the token's large supply by permanently removing portions from circulation. By decreasing the available supply while maintaining or increasing demand, the community aims to create favorable conditions for price appreciation.
SHIB (Shiba Inu) Technical Indicators Flash Bullish Signals
From a technical analysis perspective, SHIB's indicators are providing optimistic signals for potential future price movement. According to the weekly Bollinger Bands technical indicator, the meme coin could potentially witness a dramatic 100% upsurge in the near future. This optimistic outlook is based on the observed tightening of the upper Bollinger Band, a technical pattern that, while not guaranteed, frequently precedes significant breakouts in asset prices.
Adding to the bullish sentiment, SHIB has been building considerable momentum as large transaction volume recently experienced a massive 95.91% increase. This reawakening of whale activity in the SHIB ecosystem represents a positive signal regarding the price outlook for the meme coin's future, as large holders typically increase their activity when they anticipate favorable price movements.
Market participants are hopeful that the recent bullish activity throughout the ecosystem will provide SHIB with the necessary support to successfully flip the resistance at $0.000013 and maintain its position above this critical level in the days and weeks ahead. If successful, this breakthrough could establish a new support level and potentially pave the way for further gains, especially if the broader cryptocurrency market continues its upward trajectory in the Bitcoin-led rally.
The combination of increased trading volume, accelerated burn rate, favorable technical indicators, and renewed whale activity collectively suggests that SHIB may be positioning itself for a significant move should it successfully breach the current resistance level.
Peter Smith
