- Shiba Inu showed potential for a significant price recovery with bullish indicators despite recent declines.
- Increased burn rate and exchange net flow suggested growing buying pressure for Shiba Inu.
Shiba Inu [SHIB] marked its fourth anniversary this month, having been launched on the 1st of August 2020.
Created as an experiment in decentralized community building, inspired by Dogecoin [DOGE], SHIB quickly gained massive attention and experienced significant price surges in 2021.
Despite facing market volatility and a notable decline in subsequent years, the token has maintained a strong presence with a dedicated community and ongoing developments in its ecosystem.
As of the time of writing, Shiba Inu was trading at $0.00001339 with a 24-hour trading volume of $316,580,978. The token has experienced a -3.00% price decline in the last 24 hours.
Its press time market cap was $7,890,783,531 with a circulating supply of 590 trillion SHIB.
Technical indicators and market sentiment
The recent price action saw SHIB testing the lower Bollinger Band, which suggested potential support and a reversal. However, it remained below the middle band at press time, indicating continued bearish sentiment.
Also, the Relative Strength Index (RSI) was at 30.95, suggesting that the asset is nearing oversold territory. This could imply a potential buying opportunity if the RSI starts to rise, indicating a shift in momentum.
The RSI, however, has not yet broken above the 50 level, which would confirm a bullish reversal.
Source: TradingView
The Moving Average Convergence Divergence (MACD) histogram showed a slight decrease in bearish momentum, with the MACD line beginning to converge towards the signal line.
This could be an early sign of a potential bullish crossover, although confirmation is still needed.
The overall trend will remain bearish until more decisive bullish indicators emerge.
Moreover, Javon Marks, a crypto analyst, noted that SHIB maintains a bullish structure with a target of $0.000081.
He stated,
“In a few recent closes, SHIB has confirmed a macro Hidden Bullish Divergence with its RSI, indicating a potential full recovery and continuation.”
He highlighted that prices of Shiba Inu could recover by 162% from its current levels to reach $0.0000456 and potentially achieve an additional 75% upside to the $0.000081 target, totaling a 354% rise.
Source: X
SHIB’s increased burn rate
Recent data from AMBCrypto highlighted a 17% increase in Shiba Inu’s burn rate over the last 24 hours. This reduction in supply could potentially lead to a short-term increase in SHIB’s price.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Additionally, there has been a notable increase in SHIB’s net flow on exchanges, suggesting increased buying pressure, which may drive the price higher.
Despite the recent bearish trend, the Shiba Inu community remains optimistic about the token’s future prospects.
