Shiba Inu's price defends a bullish technical structure pointing to an 18% rally. With SHIB burn rate increasing to 12,833%, is the rally imminent?
Shiba Inu (SHIB) is still defending a bullish technical structure despite falling 3.18% to trade at $0.0000112 today on June 27th.
Despite intense volatility across the market, Shiba Inu's price has defended the psychological support level of $0.00001, with bulls now jumping 18% to monthly highs. With $SHIB burn rate increasing to an astonishing 12,000%, is the rally imminent?
Shiba Inu Price Eyes 18% Rally Amid Bull Flag Pattern
$SHIB price is eyeing an 18% rally to the upside. After SHIB broke the 7-week downtrend, the rally is now likely due to the formation of a bull-flag pattern on the four-hour time frame.
When this pattern appears, it usually suggests that the uptrend has only had a short break before the next bullish leg begins.
In this bullish technical structure, Shiba Inu's price target if this pattern holds is $0.0000138, which is 18% above the current price. If it does, SHIB price will be trading at its highest level in a month.
However, there is an important caveat to such a rally, which is the upper boundary resistance of the bull flag at $0.000019. The top meme coin will have to overcome this resistance level first to confirm a strong trend.
The 50-day SMA of $0.0000113 is also a major barrier to an uptrend, as a close above it would confirm that the short-term momentum is bullish.
The 20-day SMA level at $0.00001252 is also a key resistance to watch, with past data showing that gains often precede a decisive close above this level.
However, the above bullish Shiba Inu price prediction faces a challenge due to the RSI indicator, which is at 44.
SHIB burn rate surges by 12,000%
Shebburn data shows that $SHIB burn rate has increased by 12,833% in the last 24 hours, with over 13 million tokens removed from the circulating supply.
This increase brings the total number of SHIB tokens burned in the past seven days to 75 million.
The supply reduction is sharp for Shiba Inu price. Additionally, the increase also coincided with a 27% increase in SHIB's daily active addresses from 2,777 to 3,534 within 24 hours, according to Sentiment Data.
The increasing burn rate and high usage of the network indicates that more traders and users are on the Shiba Inu network.
If this continues, it could bode well for Shiba Inu's price performance and pave the way for this meme token's recovery.
Finally, Shibarium TVL has also recorded significant growth over the past few days, with this metric increasing from $1.77 million to $1.96 million at press time, which may account for the increase in burn rate and address count.
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