Shiba Inu Price Set for Bullish Breakout as Token Burn Rate Surges 940%
Shiba Inu (SHIB) is gearing up for a potential bullish breakout with a 940% increase in token burn and a favorable market sentiment reflected in a fear and greed index score of 83. Trading at $0.000026, SHIB’s rise showcases a 142% increase since August. A cup-and-handle pattern on technical charts hints at further price appreciation, although a drop below $0.000020 could invalidate this bullish trend.
Shiba Inu (SHIB) is poised for a significant bullish breakout, evidenced by a surge in its token burn rate, which recently increased by nearly 940%, along with the positive sentiment reflected in the cryptocurrency fear and greed index. Trading at $0.000026 as of November 19, 2023, SHIB has rebounded impressively from a low of $0.0000246, rising 142% since August. The surge in token burn, reaching 3.69 million SHIB on Tuesday, contributes to a cumulative total of over 410 trillion tokens removed from circulation, against a circulating supply of 583.7 trillion tokens. Token burn involves transferring coins to an inaccessible wallet, thereby permanently removing them from circulation. This process is fueled by the Shibarium and ShibaSwap ecosystems and voluntary contributions from committed community members. Additionally, the cryptocurrency fear and greed index indicates a prevailing sentiment of extreme greed at 83, which historically correlates with positive performance in altcoins. This bullish sentiment is mirrored in the wider meme coin market, currently valued at $128 billion, surpassing even major corporations like Lockheed Martin and Airbus. Technical analysis reveals that Shiba Inu is forming a strong bullish pattern, specifically a cup-and-handle formation on its daily charts, which includes a rounded bottom followed by consolidation near the peak. Anticipation builds for a potential breakout above the resistance level of $0.00002933, which could lead to a target of $0.000045—a 76% increase from the current price. Moreover, Shiba Inu’s price remains above the 50-day moving average, and its Market Value to Realized Value (MVRV) ratio has surpassed 3. However, should the price fall below the critical support level of $0.000020, the optimistic outlook would be negated.
The cryptocurrency market, particularly the meme coin segment, has seen notable fluctuations, influenced by various factors including community engagement, tokenomics, and market sentiment. Shiba Inu, in particular, has emerged as the second-largest meme coin, attracting attention for its unique community-driven initiatives, including token burning, which serves to reduce supply and potentially increase demand. The fear and greed index serves as a barometer for market sentiment, with extreme greed often indicating potential market rallies. Understanding the mechanics of token burning and market psychology is crucial for investors looking to navigate the complexities of this volatile market.
In conclusion, Shiba Inu’s current trajectory appears promising, buoyed by a significant increase in token burns and a favorable market sentiment, as indicated by the fear and greed index. The technical patterns suggest a potential bullish breakout, with significant upside potential if key resistance levels are surpassed. Nonetheless, investors should remain cautious, as any decline below critical support levels could alter the bullish outlook considerably.
Original Source: crypto.news
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