Cryptocurrency markets have been volatile, with the leading cryptocurrency Bitcoin (BTC) pushing the $64,000 level while the popular meme token Shiba Inu (SHIB) gained sustainable momentum last week after the price recovered from the local support of $0.00000934.
Momentum Builds for Shiba Inu
This positive surge in Shiba Inu has led to a 20% increase, with the meme token currently trading at $0.0000112. The rising price broke the resistance trend line of a long-standing channel model, which could be an early sign of a trend reversal. The latest correction trend in Shiba Inu’s price dropped to $0.00000943 due to increased demand for Bitcoin from traditional markets, which also lifted altcoins, and this renewed buying interest pushed SHIB’s price from $0.0000084 to $0.0000112, a 30% increase in five weeks.
During the same time frame, Shiba Inu futures open interest saw a significant increase of 120%, rising from $16.6 million to $36.6 million. This notable increase may reflect growing excitement among analysts and investors about SHIB’s future price trajectory. Analysis of the higher time frame chart of the meme token indicates that the recent surge breached the resistance trend line of a descending wedge formation that has been active for the last 20 months. The converging nature of the two descending trend lines suggests a decrease in downward momentum.
SHIB’s Burning Rate Increases
Therefore, the breach of resistance could indicate a shift in market dynamics and a higher potential for recovery. Moreover, Shibburn reported a significant burn of 102.76 million SHIB by the Shiba Inu community in the last 24 hours, indicating a staggering increase of 1913.95% in the burn rate. This substantial reduction in supply could potentially support the sustainability of the token above the breached resistance level of $0.0000109. Under the influence of the wedge formation, the Shiba Inu price could target the fundamental resistances at $0.0000119 to $0.0000158 and then $0.000018.
