SHIB defends $0.00001 support level and forms a bull flag pattern, hinting at a possible 18% upward movement.
Shiba Inu’s burn rate jumps 12,833%, removing 13 million tokens and reducing the circulating supply significantly.
Daily active addresses surge by 27%, and Shibarium’s TVL rises steadily, signaling increased user engagement and on-chain activity.
Shiba Inu continued to defend the crucial $0.00001 support level on June 27, despite a daily drop of 3.18% that brought its price to $0.0000112. This strength occurs at a time when the entire market is quite volatile and leaves the prospect of a rally on the table.
SHIB recently broke out of a seven-week downtrend and is currently forming a bull flag pattern on the four-hour chart. This pattern generally points to a pause in an upward trend before resuming. If the pattern holds, SHIB could rise 18% to reach $0.0000138, the highest point in over a month.
Resistance Levels Could Hinder Momentum
Despite the bullish setup, Shiba Inu faces multiple resistance zones. The top boundary of the bull flag around $0.000019 remains a key challenge. Additional pressure comes from the 50-day Simple Moving Average at $0.0000113. A sustained close above this level would signal positive short-term momentum. The 20-day SMA at $0.00001252 is another resistance level to watch, as historical data suggests price gains tend to follow a break above this mark.
According to Shibburn, there was a sudden increase in the burn rate of SHIB which has increased by 12,833 percent over the past 24 hours. More than 13 million tokens were burnt over this time, which has led to a sum of 75 million tokens being retired weekly. Such a drastic decrease in supply favours the likelihood for an increase in price in the short run.
Network Activity Shows Strong Engagement
The traffic on the SHIB network also increased. The daily active addresses growth was high as per the data in Santiment, measuring a 27% in increase between 2,777 and 3,534 in just one day. The increase in user activities is an indication of the reinforcement of community activity, which is usually associated with the price movements in the short run.
Total Value Locked (TVL) in the layer-2 blockchain Shibarium of Shiba Inu has also increased. The TVL rose to amount to 1.96 million compared to $1.77 million. This move could have helped trigger the rise in SHIB burning and observed activity on the network by users.
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