Although Shiba Inu (SHIB) dropped 3.18% today (June 27) to $0.0000112, it still maintains a bullish technical structure. Despite significant market volatility, the Shiba Inu price has held the psychological support level of $0.00001, and bulls are currently optimistic about an 18% rise to reach a monthly high. Given that SHIB's burn rate has skyrocketed to an astounding 12,000%, is a rebound imminent?
Shiba Inu price is expected to rise 18% in the bull flag pattern.
SHIB price is expected to rise by 18%. After ending a 7-week downtrend, this rise is likely to occur due to the formation of a bullish flag pattern on the four-hour chart. When this pattern appears, it typically indicates that the uptrend has only experienced a brief pause before the next round of upward movement begins.
Under this bullish technical structure, if this pattern holds, the target price for Shiba Inu stock is $0.0000138, which is an 18% increase from the current price. If this occurs, the SHIB price will reach its highest level in a month.
However, there is an important warning regarding the occurrence of this rebound: the upper boundary resistance level of the bull flag is at $0.000019. The top meme coin must first break through this resistance level to confirm a strong trend.
The 50-day moving average (SMA) of $0.0000113 is also a major resistance level in the uptrend, and a closing price above this level will confirm short-term bullish momentum. The 20-day moving average (SMA) of $0.00001252 is also a key resistance level worth noting; past data shows that a clear closing price above this level typically indicates a rise.
However, with the RSI currently at 44, the aforementioned bullish Shiba Inu price prediction faces challenges. This reading indicates that bearish momentum remains prevalent, posing a risk to the confirmation of SHIB's price and the bull flag.
SHIB burn rate surged 12,000%
Data from Shibburn shows that the SHIB burn rate increased by 12,833% in the past 24 hours, with over 13 million SHIB tokens removed from circulation. This surge brings the total number of SHIB tokens burned in the past week to 75 million.
The reduction in supply is favorable for Shiba Inu's price. Additionally, according to data from Santiment, the number of daily active addresses for SHIB increased from 2,777 to 3,534 within 24 hours, which coincides with a surge in supply.
The soaring burn rate and high network usage indicate that more and more traders and users are utilizing the Shiba Inu network. If this continues, it could signal good price performance for Shiba Inu and pave the way for a recovery of this meme token.
Finally, Shibarium's TVL has also recorded significant growth in the past few days, increasing from $1.77 million to $1.96 million as of the time of writing, which may be the reason for the surge in burn rate and address numbers.
