Shiba Inu (SHIB) has had a downward trend and high fluctuation in the market in the recent weeks. However, the recent analyses indicate that the meme coin may be on the verge of a massive rally, with some analysts expecting a price increase of up to 116%.
Strong Support Levels Indicate Potential Rebound
Shiba Inu has been trading on some important supports which could act as a bounce back point for bulls. According to TradingView, MMBTtrader, there is robust daily support for SHIB at the $0.00001 level while there is another support level slightly above the $0.000005 level.
Such levels have been established as potential points of price growth, which means that a sharp increase is possible.
Source: TradingView
Support levels have also been observed at $0.00002 and $0.00005, which may interrupt the upward trend. However, the analyst still has a positive outlook on SHIB and believes that it can regain $0.00003 in the short term, which is a 116.92% surge from the current price.
Bullish Momentum Supported by Key Indicators
Meanwhile, analyst Maks Klimenko pointed out that the price action formed a bullish reversal setup after sweeping through important support levels near $0.00001333. This is also supported by the Moving Average Convergence Divergence (MACD) indicator on the daily timeframe which indicates a bullish divergence.
The bearish sentiment might be decreasing, and the bullish sentiment increasing if the MACD line crosses above the signal line with a positive histogram.
This momentum shift is in agreement with the analysis of MMBTtrader, thus supporting the idea of Shiba Inu value increase in the upcoming days. The potential move’s target level is set at approximately $0.00002024,, which supports the existing bullish sentiment regarding the token.
Shibarium Developments and Burn Rate Increase Signal Possible Price Recovery
Moving away from the technical analysis, other aspects of the Shiba Inu ecosystem also point towards the possibility of the price rising. The Shibarium layer-2 blockchain solution which is aimed at enhancing the Shiba Inu network has recently shown a spike in activity.
On August 14, Shibarium had completed 6,360 daily transactions which was a 60% uptick as compared to the transactions of the previous day. This increase in activity shows the increasing attention and usage of the Shibarium network, which may have a positive effect on the price of SHIB.
HOURLY SHIB UPDATE$SHIB Price: $0.00001374 (1hr 0.69% ▲ | 24hr -1.83% ▼ )
Market Cap: $8,084,785,385 (-1.92% ▼)
Total Supply: 589,272,048,086,718TOKENS BURNT
Past 24Hrs: 0 (-100% ▼)
Past 7 Days: 148,933,732 (843.95% ▲)— Shibburn (@shibburn) August 15, 2024
Also, the Burn Mechanism of Shiba Inu has picked up the pace with the burn rate rising by roughly 850% within the last week. In this period alone, more than 148 million SHIB tokens were burned, which played a role in reducing the number of tokens in circulation. As of now, over 410 trillion SHIB tokens have been burnt, which is a large part of the entire available supply.
Cautious Optimism Amid Whale Activity and Market Sentiment
However, there are some factors that call for some degree of caution. Data from the past few days show that large holder inflows were at their lowest on August 14, by 32% from August 13, which means some of the whale investors could be dumping their tokens.
This trend is accompanied by a net positive flow of SHIB into exchanges, which may signal further selling pressure in the market.
Moreover, from a technical perspective, it can be seen that SHIB may find support at $0.00001350 and $0.00001100 if the downward trend continues. Furthermore, a contraction of Bollinger Bands is an indication of low volatility, which is often followed by a change in price direction.
