- Shiba Inu (SHIB) has seen a significant burn rate, with 16,479,283 SHIB burned in the past 24 hours and 61,082,353 SHIB over the last week.
- The memecoin broke a critical resistance level at $0.0000165, supported by an 80% surge in trading volume.
- SHIB’s price action suggests bullish momentum, with a potential 18% rally toward $0.000020 if it successfully retests $0.000017.
- Intraday traders are over-leveraged, with key liquidation levels at $0.0000154 (support) and $0.0000176 (resistance).
- Positive sentiment and on-chain data indicate that bulls currently have the upper hand, potentially triggering short liquidations.
Shiba Inu’s Burn Rate: A Catalyst for Long-Term Growth
Shiba Inu’s community has been actively engaging in token burns, a process that permanently removes tokens from circulation to reduce supply and support price appreciation. Over the past 24 hours, 16,479,283 SHIB tokens were burned, adding to a total of 61,082,353 SHIB burned in the last seven days. This consistent burn rate reflects the community’s commitment to controlling inflation and fostering long-term value for the token.
Token burning is a critical mechanism for cryptocurrencies like SHIB, as it creates scarcity, which can lead to increased demand over time. By reducing the circulating supply, the community aims to counteract inflationary pressures and support upward price momentum. This recent surge in burn activity has not only bolstered market sentiment but also contributed to the memecoin’s recent price rally.
Breaking Resistance: SHIB’s Bullish Price Action
Shiba Inu’s price action has been a focal point for traders, especially after it broke a crucial resistance level at $0.0000165. This breakout was accompanied by an 80% surge in trading volume, signaling heightened market interest and bullish sentiment. At the time of writing, SHIB was trading near $0.0000165, reflecting a 5.10% increase over the past 24 hours.
The resistance level at $0.0000165 is particularly significant as it represents the neckline of an ascending triangle pattern on the four-hour chart. This pattern is often associated with bullish breakouts, and SHIB’s ability to breach this level has set the stage for further gains. If the memecoin successfully retests and holds above $0.000017, it could confirm bullish momentum and pave the way for an 18% rally toward $0.000020. However, failure to hold this level could result in a pullback, testing the strength of the current uptrend.
Liquidation Levels: A Tug-of-War Between Bulls and Bears
The current market dynamics reveal a tug-of-war between bullish and bearish traders, with key liquidation levels playing a pivotal role. On-chain data shows that intraday traders holding long positions are over-leveraged at $0.0000154, with $2 million worth of open positions. This level now serves as a strong support zone for SHIB, providing a safety net for bulls.
Conversely, short traders are over-leveraged at $0.0000176, with $940,000 worth of positions. This level has emerged as a critical resistance point, and a sustained move above it could trigger a wave of short liquidations. Given the current bullish sentiment and positive on-chain data, the likelihood of SHIB breaking this resistance appears strong. If this happens, it could further fuel upward momentum, forcing short traders to cover their positions and amplifying the rally.
Broader Market Sentiment: Bulls in Control
Shiba Inu’s recent price action and burn activity are occurring against the backdrop of a broader market rebound, which has provided additional tailwinds for the memecoin. The bullish sentiment is evident in the behavior of traders and the surge in trading volume, both of which suggest growing confidence in SHIB’s potential for further gains.
However, it’s important to note that the market remains highly volatile, and any significant price movement could lead to liquidations on either side. While bulls currently appear to have the upper hand, the outcome will ultimately depend on SHIB’s ability to hold key support levels and break through resistance zones. For now, the memecoin’s prospects look promising, but traders should remain cautious and monitor market developments closely.
Conclusion: A Promising but Precarious Path Forward
Shiba Inu’s recent burn activity, coupled with its bullish price action, has positioned the memecoin for potential gains. The break above $0.0000165 and the subsequent retest of $0.000017 will be critical in determining whether SHIB can sustain its upward momentum. With key liquidation levels at $0.0000154 and $0.0000176, the market is at a pivotal juncture, and the next few days could prove decisive.
While the current sentiment favors the bulls, the memecoin’s future will depend on its ability to maintain positive momentum and attract continued market interest. If SHIB can successfully navigate these challenges, it may be poised for an 18% rally toward $0.000020, solidifying its position as a leading player in the memecoin space. For now, cautious optimism remains the prevailing sentiment.
