The Shiba Inu price is gaining attention after a sharp rise in its token burn rate, increasing by over 9,400% in the last 24 hours. This increasing SHIB burn has come amid a 7% surge in the Shiba Inu price in the last day.
Shiba Inu Price Eyes 105% Bullish Rally
Following a 9400% increase in the SHIB burn rate, crypto analyst Javon Marks has reiterated his prediction for Shiba Inu’s price amid positive RSI divergence. The divergence appeared with the SHIB price forming lower lows while the RSI is creating higher lows.
A situation like that is usually interpreted as an indication that selling pressures are subsiding and that the momentum in the market is gradually shifting and becoming favorable. Marks implies that such formations frequently indicate the beginning of trend reversals.
According to Javon Marks, the Shiba Inu price could reach $0.000081 if the current trend holds. That would represent a quadruple from recent lows of around $0.000016 and a gain of more than 105% from current levels. At press time, the top meme coin was trading at $0.00001610, an 8% surge from the intraday low and a 25% surge in the last seven days.
The SHIB price chart also portrays a rounded bottom pattern, which is a pattern that often indicates a long-term bullish reversal ahead. According to Marks, Shiba Inu price breakout above resistance in recent times and even flipping Hedera by market cap indicates that buyers are in control of the market. The appearance of a strong bullish candle in the breakout indicates increased buying as well as investor confidence.
SHIB Price Resistance Zones and On-Chain Activity
Despite recent gains, the SHIB price is nearing a resistance zone that may determine its next move. On-chain data from IntoTheBlock shows that around 516.12 trillion SHIB were previously bought at prices between $0.000016 and $0.000019. 116,430 addresses hold these tokens.
This concentration of holdings could lead to selling pressure if the price enters this zone. Many holders may choose to exit their positions as prices return to their average cost, especially if they have been holding since late 2021 or early 2022.
If SHIB moves above this resistance area with strong momentum, further gains may be possible. The next range of interest lies between $0.000019 and $0.000024. 136,000 addresses hold about 178 trillion SHIB at an average cost of $0.000022.
Open Interest Soars 19%, What Next?
The derivatives market data indicates inconsistent signs. While the 24h trading volume of SHIB is down by 25.80% to $311.85 million, open interest is up more than 19% at $249.33 million.
That is indicative of the fact that, despite some of the traders having sold their positions, new buyers are coming into the market expecting increased volatility.
Source: Coinglass
On the other hand, if the Shiba Inu price isn’t able to break through its resistance level, a correction might emerge. According to IntoTheBlock, the next-level support zone is between $0.000014 and $0.000016, where there are 18.33 trillion SHIB held.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
