Shiba Inu price rose 8% as burn rate increased 9,400% and RSI divergence points to 105% bullish towards $0.000081.
Shiba Inu's price is gaining attention after a rapid increase in its token burn rate, rising more than 9,400% in the last 24 hours. This rising SHIB burn comes amid a 7% rise in Shiba Inu's price yesterday.
Shiba Inu Price Eyes 105% Blush Riley
Following SHIB's 9400% increase in burn rate, crypto analyst Jon Marks has reiterated his prediction for Shiba Inu's price amid a positive RSI divergence. A divergence appeared with SHIB price while RSI is making higher lows.
Such a situation is usually interpreted as an indication that the selling pressure is easing and the momentum in the market is gradually changing and becoming favorable. Marks implies that such formations often signal the beginning of a trend reversal.
According to Javon Marks, Shiba Inu price could reach $0.000081 if current trend continues.
This would represent a nearly quadruple from the recent low of $0.000016 and an increase of more than 105% from current levels.
At press time, the top meme coin was trading at $0.00001610, up 8% from its intraday low and up 25% over the past seven days.
The $SHIB price chart also presents a rounded down pattern, a pattern that often indicates a long-term bullish reversal ahead.
According to Marks, Shiba Inu prices breaking out above resistance in recent days and even reversing Hedra in terms of market cap indicate that buyers are in control of the market.
The appearance of a strong bullish candle in the breakout indicates an increase in buying as well as investor confidence.
SHIB price resistance zones and on-chain activity
Despite recent gains, SHIB's price is near a resistance zone that could determine its next move.
IntoTheBlock's on-chain data shows that approximately 516.12 trillion SHIB were previously purchased at prices between $0.000016 and $0.000019. 116,430 addresses hold the token.
This concentration of holdings can 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 could be possible.
Next range of interest is between $0.000019 and $0.000024. 136,000 addresses hold about 178 trillion SHIB with an average value of $0.000022.
Open interest rose 19%, what's next?
Derivatives market data points to conflicting signs. While SHIB's 24-hour trading volume is down 25.80 percent at $311.85 million, open interest is up over 19 percent at $249.33 million.
This is indicative of the fact that despite some traders selling their positions, new buyers are anticipating the upcoming volatility in the market.
On the other hand, if the Shiba Inu price is not able to break its resistance level, a correction may occur.
According to IntoTheBlock, the next level support zone is between $0.000014 and $0.000016, where 18.33 trillion SHIB are held.
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