Shiba Inu (SHIB) has recently experienced a price increase, attributed to favorable risk sentiment following political developments and a surge in token burn rates. Technical indicators suggest strong potential for further price appreciation, with key resistance and support levels influencing its market trajectory.

On Wednesday, Shiba Inu (SHIB) maintained its price stability as numerous meme coins experienced a resurgence. The cryptocurrency rose to $0.000020, reflecting an impressive 82% increase from its lowest point in August. This surge has been primarily attributed to a growing risk-on attitude among investors following Donald Trump’s election victory, which potentially implies more favorable regulations for the cryptocurrency industry in the coming years. Further contributing to this bullish momentum is the significant increase in the Shiba Inu token burn rate. As reported by Shibburn, there was a remarkable surge of 3,674% on November 6, resulting in the burning of 53,312 tokens. Cumulatively, this has reduced the total circulating supply of SHIB to 583 trillion tokens, bolstering its value by restricting supply. Interestingly, this uptick in burns occurred despite a decrease in transactions and fees within Shibarium, as the average transaction fee fell to 0.00002 BONE. The technical indicators for SHIB reflect strong potential for further price increases, as it navigates above an ascending trendline formed since early September. Notably, it is approaching a golden cross pattern, a situation typically heralding a rally, as the 50-day and 200-day Exponential Moving Averages are set to converge. Previous instances of this pattern, such as in October of the prior year, led to significant price escalations. For SHIB to continue its upward trajectory, it must surpass the key resistance level of $0.000021, which marks its high from September 27. An effective breakthrough could propel the price to the next resistance level of $0.00002940, representing a theoretical increase of 54%. However, a decline below the support level of $0.000015 would signal unfavorable market conditions, indicating heightened selling pressure.

Shiba Inu (SHIB), often recognized as a major player among meme coins, has garnered attention due to its potential for dramatic price movements. The cryptocurrency landscape has been influenced significantly by broader political and economic shifts, such as regulatory changes impacting the industry. The concepts of token burning and the strategic management of supply have also been crucial for maintaining and enhancing the value of digital currencies like SHIB. Furthermore, technical analysis indicators, such as moving averages and support-resistance levels, play a pivotal role in predicting market movements in this volatile sector.

In summary, Shiba Inu’s recent price stability and potential for future gains stem from favorable macroeconomic conditions and a significant increase in token burns, which effectively limit supply. Technical analysis suggests the possibility of upward movement, particularly if key resistance levels are breached. Investors in SHIB should remain vigilant, as both market sentiment and technical indicators will drive future price action.

Original Source: crypto.news

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