Shiba Inu (SHIB) is making a comeback thanks to technical signals and on-chain activities indicating a strong price increase is coming.
SHIB has increased by more than 8% in the past 24 hours, currently trading around $0.00001394 with a market cap above $8.2 billion, ranking 28th in global cryptocurrency size.
MAIN CONTENT
SHIB is forming a double bottom pattern, signaling a potential price breakout.
The explosive burn rate and strong whale trading support the upward trend.
Despite strong potential, on-chain and technical indicators still warn of short-term correction risks.
What technical patterns does SHIB have that indicate an upward trend?
SHIB has been forming a double bottom pattern since May, which is a bullish chart pattern indicating a good support area.
The hard support level of SHIB is at $0.000010, which has not been breached for many months. Each time the price touches this level, it bounces back strongly; however, it often faces resistance at around $0.0000159. This forms the basis for investors to expect SHIB to break out.
The double bottom pattern is a sign positively recognized by traders and technical analysts, supporting SHIB's upward trend in the near future.
Why has SHIB's price surged today?
SHIB burning activities have significantly increased, with over 87 million Tokens sent to dead wallets in 24 hours, causing the burn rate to increase by 48,000%. Although this amount is small compared to the total supply of 589 trillion SHIB, such large burning events are often associated with price surges.
Notably, the trading volume of SHIB whales also surged from 1.28 trillion to 3.69 trillion Tokens in just two days (an increase of over 188%), according to data from IntoTheBlock. This is a signal that large funds are entering, often seen as a positive sign.
"The increase in whale trading and the explosive burn rate are crucial prerequisites for SHIB to create a price rally in the near future."
Cryptocurrency analyst Nguyen Minh Tuan, 2024
Are there any warning signs of risk as SHIB accelerates?
Despite the positive outlook for price increases, on-chain indicators warn of caution. The amount of SHIB transferred to centralized exchanges increased last week, indicating that many investors may be preparing to sell.
The RSI index of SHIB is currently above 62, approaching the overbought threshold of 70, signaling a possible short-term correction ahead. These signs remind investors to manage risk and closely monitor market developments.
"A high RSI index and a strong influx of money into exchanges could be a sign of short-term correction; investors need to maintain their risk management strategy."
Doan Thanh Binh, technical analysis expert, 2024
How do new development steps push SHIB up in the meme coin market?
The price surge of SHIB also occurred amidst a strong recovery of the overall meme coin market, with coins like Dogecoin, Pepe, Bonk, and dogwifhat all achieving double-digit gains in a single day.
This synchronized recovery creates momentum for the entire industry, helping SHIB leverage the meme coin wave to improve its position on the capitalization rankings and attract new funds.
Frequently Asked Questions
What is the current trading price of SHIB?
SHIB is currently trading around $0.00001394, with a market cap exceeding $8.2 billion, ranking 28th in global cryptocurrency market capitalization.
What does the double bottom pattern mean for SHIB?
The double bottom pattern shows strong support at $0.000010, usually signaling a potential bounce back when reaching this price area.
How does Token burning affect the price of SHIB?
The sharp increase in the burn rate reduces the circulating supply, often triggering price increases due to the balance of supply and demand.
What role do SHIB whale trades play?
When whales increased trading by 188%, it indicated a large influx of money into SHIB, creating a positive sentiment for the market.
What risks should be noted when investing in SHIB?
The influx of money into exchanges increases along with the RSI index nearing the overbought zone, warning of the possibility of short-term correction.
Source: https://tintucbitcoin.com/shiba-inu-tang-8-nho-ca-voi/
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