Shiba Inu, the meme-inspired cryptocurrency that kicked off with an overwhelming bullish trend at the beginning of the new year, is still bringing bullish waves in the price graph as it makes headlines in the meme community. Despite the crypto market’s recent volatility with sudden price dips, SHIB’s price has managed to hold its momentum in a stable region.
SHIB Price Performs Bullish Despite Low Burn Rate
SHIB’s price is turning heads in the crypto world as it made a 20% surge in the last 24 hours, attracting the attention of retail investors in the market. However, while the recent price surge is building bullish hopes ahead of the Shibarium launch, SHIB’s burn rate needs to be promising enough to hold the upward momentum.
Despite a 20% price surge, Shiba Inu’s burn rate has remained unchanged, suggesting a reduced use-case as a payment tool.
Data aggregator, Shibburn noted that merchants who accept SHIB as payment mode and send it to a burning address are used to generate the burning volume, but this volume has recently formed a dip.
The website stated that the reason behind this drop is caused by decreased network activity or a decline in Shiba Inu’s popularity.
However, the weekly burn rate looks promising as 50 million SHIB tokens were removed from circulation, surging the burn rate by 150%.
Moreover, whale investors continue accumulating a massive amount of SHIB tokens as on-chain analytic firm Santiment noted a spike in SHIB transactions worth over $100K, hinting at an upcoming bullish shift.
Shiba Inu Is Testing The Market’s Patience
Despite concerns regarding Shiba Inu’s burn rate, the meme coin continues to print an impressive journey in the price chart. Moreover, technical indicators hint at a bullish trend continuation if bulls break through the next resistance levels without any hurdle.
As of writing, SHIB’s price trades at $0.00001446 and is currently heading toward its immediate resistance level. Crypto trading expert, MMBtrader, expects a long-term gain for Shiba Inu as it forms a solid ascending pattern.
The analyst predicts that SHIB holders may witness a heavy pump if the meme coin breaks above two major resistance levels at $0.000016 and $0.000021, respectively.
However, Shiba Inu may notice a minor downward correction to its 23.6% Fib level as it hovers near a crucial resistance level at $0.000015.
A bearish trend is expected as both Stoch RSI and RSI-14 trade near the overbought region, and a drop to their neutral territory may slump the meme coin to $0.000013.
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Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.