Shiba Inu (SHIB) has shown resilience this week by continuing its upward momentum despite the challenges faced by many altcoins. Despite the turbulent crypto market triggered by significant changes on Binance, Shiba Inu has weathered the storm. So, what price levels can Shiba Inu reach?
Binance Turbulence Shakes the Market
Recent developments at Binance, including the departure of its founder and CEO Changpeng Zhao and the appointment of Richard Teng, have deeply affected the entire crypto market. CZ being found guilty of violating anti-money laundering rules in the US resulted in a $4.3 billion settlement with the Department of Justice (DoJ).
The repercussions did not stop there. CZ’s guilty verdict led to his forced resignation and removal from executive roles in the company. This unexpected development caused a withdrawal of funds across the market, affecting tokens like Shiba Inu, which experienced a 6.2% drop in just one week.
The market turbulence resulted in a 10% decrease in Shiba Inu trading volume within 24 hours. The trading volume dropped to $103 million. However, Shiba Inu’s market value increased by 1.22% to reach $4.8 billion, maintaining its position as the 19th highest cryptocurrency.
SHIB Prepares for Potential Breakout
Shiba Inu experienced a bounceback from the support provided by the 200-day Exponential Moving Average (EMA) indicator and maintained the critical support at $0.000008. Trading at $0.0000082, SHIB is preparing for a potential breakout from the descending wedge formation, signaling a potential climb to $0.0000097, representing a 17% increase.
To confirm the breakout, Shiba Inu needs to surpass the convergence resistance around $0.0000083, formed by the 50-day EMA (red), 100-day EMA (blue), and the upper trend line of the wedge formation. The MACD indicator, indicating a bullish trend with a buying signal on November 23, shows buyer dominance.
Token Burning Activity and Bullish Outlook
In addition to these developments, Shiba Inu’s token burning activity has increased by 128%, reaching approximately 9,135,000 SHIB.
Considering the current supply is slightly above 580 trillion and the total supply is 999 trillion, the token burning program becomes crucial for Shiba Inu’s performance in the upcoming bull market. The community’s focus on reducing demand for the meme coin is essential for achieving the desired performance as the year comes to an end.