Shiba Inu (SHIB), the second-largest meme token by market capitalization, is capturing market attention once again. Over the past 24 hours, SHIB has risen 3%, reaching its highest level in nearly seven weeks. This price momentum is drawing bullish predictions from traders and analysts alike, primarily due to one major catalyst — its explosive burn rate.
SHIB Outperforms Bitcoin This Month
While Bitcoin (BTC) has seen a 13% monthly gain, Shiba Inu has jumped over 20% in the same timeframe. This outperformance is notable considering the broader market’s rally led by BTC crossing the $122,000 mark.
Shiba Inu’s market capitalization has crossed the $8 billion mark, underscoring its growing significance in the altcoin space.
Technical Indicators Signal Bullish Momentum
The 14-day Relative Strength Index (RSI) for SHIB is currently approaching 70, signaling strong upward momentum. Though commonly viewed as the overbought threshold, RSI near 70 often supports bullish continuation patterns, especially in the presence of high volume and fundamental drivers.
Technical analysis shows that SHIB is forming an inverse head-and-shoulders pattern, a classic reversal setup often preceding major upward price moves.
Burn Rate Surges Over 2,000%
What’s fueling this renewed optimism? The SHIB burn rate has soared by 2,080% on a weekly basis, according to blockchain data. This aggressive reduction in supply is being interpreted as a strong bullish signal by market participants.
A reduced token supply with consistent demand increases scarcity, which may support future price increases.
Support and Resistance Levels
- Key support zone: $0.00001309
- Immediate resistance: $0.00001410
Price action shows that volume-backed support has formed at $0.00001309, while resistance near $0.00001410 has been tested with high volume of over 2.4 trillion tokens.
SHIB continues to form higher lows, confirming sustained buying pressure and a clear upward trend.
Can SHIB Maintain Momentum?
As market interest in meme tokens returns and burn mechanisms intensify, analysts are speculating about the potential for a parabolic rally, with some forecasting gains as high as 1,500% in the medium term.
If SHIB can maintain support above $0.0000135 and break through the $0.0000141 level, further upside is likely.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.