Shiba Inu price rises 8% as the burn rate soars 9,400%, and RSI signals a potential 105% rally toward $0.000081.
The Shiba Inu price has garnered attention due to a significant increase in the token burn rate, which has risen by more than 9,400% in the past 24 hours. The Shiba Inu price has experienced a 7% increase in the past day, which has coincided with the increasing SHIB burn.
The Shiba Inu price is anticipated to experience a 105% increase
Crypto analyst Javon Marks has reiterated his forecast for the price of Shiba Inu in the context of positive RSI divergence, following a 9400% increase in the SHIB burn rate. The divergence was observed when the SHIB price formed lower lows, while the RSI generated higher lows.
A scenario such as this is typically interpreted as a sign that the market’s momentum is progressively shifting and becoming more favorable and that selling pressures are subsiding. Marks suggests that these formations frequently presage the commencement of trend reversals.
If the present trend persists, Javon Marks predicts that the Shiba Inu price could reach $0.000081. That would be a gain of over 105% from current levels and a quadrupling from recent lows of approximately $0.000016. The top meme coin was trading at $0.00001610 at publication, representing a 25% increase in the past seven days and an 8% increase from the intraday low.
The SHIB price chart also exhibits a rounded bottom pattern, which is a pattern that frequently suggests a long-term bullish reversal is imminent. Marks asserts that the market is currently under the control of purchasers, as evidenced by the recent breakout of the Shiba Inu price above resistance and the subsequent flipping of Hedera by market capitalization. The breakout’s appearance of a robust bullish candle suggests that investor confidence and purchasing activity have increased.
On-Chain Activity and SHIB Price Resistance Zones
Despite recent gains, the SHIB price is approaching a resistance zone that could dictate its subsequent course. According to on-chain data from IntoTheBlock, approximately 516.12 trillion SHIB were previously acquired at prices ranging from $0.000016 to $0.000019. 116,430 addresses hold these coins.
If the price enters this region, the preponderance of holdings could result in selling pressure. Many holders may liquidate their positions as prices return to their average cost, particularly if they have held them since late 2021 or early 2022.
Further gains may be feasible if SHIB maintains a robust momentum and surpasses this resistance area. The subsequent interest rate range is $0.000019 to $0.000024. At an average cost of $0.000022, approximately 178 trillion SHIB are stored in 136,000 addresses.
There is a 19% increase in open interest; what is the next step?
Inconsistent signals are observed in the derivatives market data. SHIB’s 24-hour trading volume has decreased by 25.80% to $311.85 million, while its open interest has increased by over 19% to $249.33 million.
This suggests that, even though some traders have sold their positions, new purchasers are entering the market expecting increased volatility.
Conversely, a correction may occur if the Shiba Inu price cannot surpass its resistance level. The next-level support zone, as per IntoTheBlock, is between $0.000014 and $0.000016, where 18.33 trillion SHIB are held.
