The popular market meme token Shiba Inu (SHIB) has risen this week along with Bitcoin (BTC). BTC approached $64,000 on Wednesday, while SHIB also increased to $0.0000147. On Thursday, the price of Shiba Inu traded at $0.000014, a 135% increase from its lowest level in the US in 2023, which was $0.0000059.
Shiba Inu’s Burn Rate Declines
Shiba Inu maintains a positive outlook despite a decrease in its burn rate. According to the Shibburn website, no tokens were burned in the last 24 hours, keeping the circulating supply at 581 trillion tokens. The token burning process stands out as one of the most detailed transactions in the crypto industry, with 410 trillion SHIB removed from supply so far. Despite this impressive achievement, Shiba Inu is still among the projects with the largest token supply, which is believed to prevent it from reaching record levels and beyond.
Layer 2 scaling solutions and significant projects like Shibarium also contribute to the burn program. However, according to daily charts, after SHIB broke through the descending trend line resistance, the path of least resistance shifted upwards. Before this breakout, the token was on an uptrend, with the $0.00001 resistance initially keeping SHIB consolidation at the $0.0000092 level, highlighted by support from the 200-day exponential moving average (EMA).
Investor Expectations for SHIB
The Moving Average Convergence Divergence (MACD) indicator has been signaling a buy since the beginning of February, which could support the ongoing rally. During the day, investors can expect Shiba Inu to close above $0.000014. This could be a current instant resistance. If this level remains as support, more investors may be compelled to buy, anticipating the price to rise to $0.00002.
Considering the possibility of a pullback due to a potential double-top formation around $0.000015, increased buying pressure could play a significant role in supporting the rally. Shiba Inu had unsuccessfully tested this resistance a year ago in February, followed by a significant sell-off to $0.0000059. If rejected, the cryptocurrency could target a recovery potential of $0.0001. The dollar-cost averaging (DCA) strategy could also be useful in the event of a correction.
