Currently trading at $0.00001630, Shiba Inu SHIB/USD has marked a substantial 27.5% gain on the weekly chart. Crypto analyst, CryptoGuru, highlighted that SHIB has broken out cleanly from a descending channel and suggested a potential 68% upward move if the current pullback maintains support at the breakout level.
"Price reclaimed the 21 EMA and is now pulling back slightly" said CryptoGuru.
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Shiba Inu has seen an increase in trading volume, as per the data shared by a news report on U.Today. Although trading volume across the market saw a dip, the SHIB/USDT trading volume on Binance has jumped by 8% in the last 24 hours. This indicates strong adoption of the meme coin.
The daily burn rate for Shiba Inu tokens has skyrocketed by a staggering 6,519%. According to Coinspeaker, more than 28.7 million SHIB tokens were removed from circulation in the last 24 hours.
The increase reverses a previous seven-day period that saw the burn rate drop by more than 80%. Such a burn rate could reduce the supply of SHIB tokens significantly to create scarcity. This may result in price inflation if the demand rises.
The strong performance of Shiba Inu coincides with Bitcoin BTC/USD hovering near its all-time highs, which has generally fueled positive momentum across the meme coin sector. Per CoinMarketCap, the BTC price is currently $103,701, which has soared by 7.44% in the past week.
Historically, Bitcoin's bull run has often resulted in a positive rally for memecoins since it is the largest cryptocurrency by market cap, and represents the majority of crypto traders and their sentiments toward the industry. So, Shiba Inu's current price rise could very well sustain, considering the growth and stability BTC has shown.
According to IntoTheBlock, 74% of SHIB tokens are held by large investors (whales), which indicates strong confidence from this segment.
Besides, a substantial 78% of SHIB investors have held their tokens for over a year, reports Watcher.Guru. This hints at long-term conviction within the SHIB community, which is vital for a sustained growth.
As Shiba Inu maintains its breakout from the descending channel, and experiences increased trading volume alongside a significant burn rate spike, SHIB price appears to be capitalizing on the broader market momentum and renewed speculative interest.
However, as a meme coin, SHIB is quite susceptible to the highly volatile and sentiment-driven nature of the market. Investors will need to closely watch volume and support levels to confirm the potential continuation of this bullish trend.
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