Shiba Inu may be on the cusp of a major turnaround, driven by the formation of an engulfing candle and the support provided by a long-standing trendline. The question on everyone’s mind is whether this resurgence could lead to a substantial bullish breakout, potentially doubling its value this August.
With the recent resurgence in the cryptocurrency market, Bitcoin and various altcoins have begun to exhibit bullish tendencies. Memecoins, once again in the spotlight, are thriving, with Shiba Inu taking a prominent position in this resurgence.
As the second-largest meme coin, SHIB boasts a robust community and increasing support, highlighting its significant underlying potential. With aspirations to enter the decentralized finance (DeFi) and Layer-2 arenas, the Shibarium project is a pivotal component of the Shiba Inu ecosystem.
A recent update confirmed that Shibarium is poised to launch an automated token burn mechanism, akin to that employed by leading projects in the sector.
As Shiba Inu’s role in the crypto landscape continues to evolve, one must ponder if it can transcend its label as a mere meme coin and more critically if the current bullish momentum in SHIB can translate into a twofold increase this month.
SHIB Constrained by a Bearish Channel
Analyzing the 1-day logarithmic price chart, Shiba Inu showcases a distinct formation of lower highs and lower lows, illustrating a descending channel pattern. Amid the recent market corrections, SHIB experienced a pullback that tested its support trendline, leading to a negative cycle.
However, a strong price rejection from the $0.000010 psychological support level indicates that Shiba Inu buyers are asserting control over this trendline. As the market begins to recover, $SHIB’s price has formed a bullish engulfing candle, achieving an 11% intraday increase.
As this recovery phase progresses, the MACD and the signal lines have surged out of the oversold territory, highlighting a bullish divergence during the last couple of dips. Additionally, the moving averages are gearing up for a bullish crossover, suggesting further potential for an upward trend.
The DMI indicator currently reflects a bearish sentiment due to the VI lines, which continue alongside a rising ADX line. Nevertheless, the recent recovery has sparked a slight convergence in the VI lines, hinting at the possibility of a favorable crossover soon.
Shiba Inu (SHIB) Burn Rates and Transactional Activity Surge
According to a recent update from the community burn tracker Shibburn, over the past 24 hours, an impressive 105,981,775 SHIB tokens have been burned, showcasing a staggering increase of 137,411.87%.
In the past week, statistics reveal that 114,775,953 SHIB tokens have been removed from circulation, corresponding to a dramatic 366% rise. This surge in the burning rate may enhance the prospects for recovery.
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Can Shiba Inu Reach $0.00003?
At the time of writing, Shiba Inu is trading at $0.0000141. According to Fibonacci retracement levels, for the uptrend to gain momentum within the descending channel, the price must breach the overhead trendline. This breakout will serve as a critical indicator for buyers.
Should this bullish break occur, traders will likely set their sights on the 50% Fib level at $0.000022 or possibly the 61.80 at $0.00003, provided the momentum remains strong.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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