- SHIB approached a key resistance level at $0.00001434.
- SHIB’s increased burn rate and spike in net flow may fuel a breakout.
After dipping by 37% during the bearish crypto market run, Shiba Inu [SHIB] retested and surged by 7% to its press time price, pushing the memecoin closer to the key resistance level at $0.00001434.
This level is very important because it has been a historical barrier, and if broken, it could indicate a big bullish move.
Source: TradingView
The stochastic RSI also indicates an overbought zone, which signals a potential bullish run. This suggests that the market movers are at a standstill, waiting for a spark before taking long positions.
SHIB increased burn rate and positive net flow
AMBCrypto further analyzed the Shibburn burn rate data. The data showed a 17% increase in the Shiba Inu’s burn rate in the last 24 hours.
This will in turn shrink its supply, potentially increasing the SHIB price on a short-term basis.
Also, SHIB has seen a remarkable increase in its net flow on exchanges. This implies that there is more buying pressure, which in turn could drive the price higher.
Source: IntoTheBlock
As a matter of fact, SHIB’s long-short ratio has favored the bulls, as more traders are up for long positions than the bears. This suggests that the market leans bullish in the short term.
Source: Coinglass
More burning and a positive net flow on exchanges are behind Shiba Inu’s progress towards breaking the resistance level of $0.00001434.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Conversely, there has been a 7% rise in its price after it dipped by 37%. This positive sentiment indicated a likely bullish rally.
If the bullish rally breaks out past the $0.00001434 resistance level, further bullish rally will be on the cards.
