Shiba Inu Price Finds Support At Key Level: Will SHIB Rebound?

by

As a seasoned analyst with over two decades of experience in the cryptocurrency market, I have seen countless coins rise and fall, but few have captured the hearts of the public quite like Shiba Inu. While the recent sell-off has taken its toll on SHIB‘s price, I believe that there are several catalysts that could lead to a strong rebound for this beloved meme coin.

The price of Shiba Inu hasn’t been immune to the ongoing altcoin market downturn. It has dropped more than 22% from its monthly peak, but there are potential factors that could trigger a significant SHIB recovery. Its current position holds firm at the 50-day moving average, the burn rate is on the rise, and the number of daily active addresses remains steady.

Shiba Inu Price May Rebound As Burn Rate Rises

The price of SHIB is expected to increase as more tokens are being destroyed, with a significant surge in token burn observed on December 18, according to ShibBurn data. This surge represented a 4,766% jump, resulting in the removal of approximately 5.2 million tokens from circulation. With this addition, the total number of burned coins now exceeds 410 trillion. The network currently circulates over 584 trillion SHIB tokens.

Burning Shiba Inu tokens can positively impact the coin by lowering the overall supply, making it a deflationary currency. Some of these token burns are voluntary, while others originate within its ecosystem, such as Shibarium and ShibaSwap. The BONE tokens generated from fees get converted into SHIB before being destroyed.

SHIB Active Addresses Are Stable

As I analyze the current state of the market, it’s worth noting that despite Shiba Inu experiencing a 22% drop from its year-to-date peak, the number of active addresses remains consistent. This trend, historically speaking, might suggest that crypto investors are holding onto their investments even amidst a local bear market, potentially indicating a higher level of confidence or resilience in Shiba Inu.

Over the past week, as per IntoTheBlock’s data, there’s been a 9.1% increase in new Shiba Inu wallets. Interestingly, the number of active wallets has decreased by only 5.96% during this timeframe – a relatively modest decrease. Additionally, the total number of Shiba Inu wallets with a balance is on the rise and currently stands at approximately 1.37 million. This figure surpasses the 30-day average of 1.35 million, as depicted in the graph below.

These figures suggest that investors remained calm during the sharp drop in Shiba Inu’s price, indicating no widespread panic selling.

SHIB Price Technical Analysis: SHIB Finds Support

Over the past few days, the Shiba Inu price graph reveals that it’s been holding steady at its 50-day moving average line. Since September, this level hasn’t been breached downwards. Additionally, the Ichimoku cloud indicator, a sign of ongoing uptrend, has provided extra support for the token.

As a crypto investor, I’ve noticed that the Shiba Inu price has developed a cup and handle pattern with its peak at approximately $0.00002941. This particular pattern, known as C&H, emerges following a significant resistance level, where it forms a rounded bottom shape after the asset struggles to break through this resistance.

The current contraction and retreat is contributing to the shaping of the handle part within this formation. This suggests that the coin’s value might rebound in the coming days. If it does, the projected goal would be at approximately $0.00002941, which corresponds to the upper boundary of the M-shaped pattern (C&H).

Approximating the Shiba Inu price might reach around $0.0000477 by using a method that involves comparing the depth of a ‘cup’ to its height at the top.

If the coin drops below its lowest point on November 15 ($0.00002275), which serves as a support level, then the optimistic outlook will no longer hold true.

Read More

2024-12-18 16:24