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As the crypto market experiences a correction, with both Ethereum and Bitcoin shedding less than 5% in value over the last 24 hours, Shiba Inu stands out with a notable 13% price surge in the last two days on the SHIB/USDT chart. This uptick comes amid a significant burn rate volume surge, potentially the largest of the year.
Technical analysis of SHIB's movement reveals the potential for a bullish Exponential Moving Average (EMA) cross, also known as the golden cross. This occurs when a shorter-term EMA, like the 50-day EMA, crosses above a longer-term EMA, such as the 200-day EMA, a traditional indicator of strong bullish market sentiment. If this golden cross materializes, it could catalyze further upward momentum for SHIB.
Currently, SHIB is navigating within an ascending channel, finding steady support along the lower boundary. The recent peak forms a basis for potential resistance levels.
The next immediate target, considering the current bullish sentiment, could be set at the recent high touched before the market-wide correction. A breach above this level may set SHIB on course to challenge the next resistance, which could be extrapolated from the height of the previous significant price movements within the channel.
Conversely, local support levels are equally important to monitor. The lower trendline of the ascending channel and the 50-day EMA act as crucial support zones. A hold above these levels could affirm the positive trend, while a drop below might suggest a reevaluation of bullish expectations.
The recent surge in SHIB's burn rate is a key factor that cannot be overlooked. A burn rate increase of over 7,424,294.41% in the last 24 hours represents a massive reduction in supply that can significantly impact SHIB's price valuation. Such a dramatic burn has the potential to attract attention and could be a precursor to increased investor interest.
Denys Serhiichuk
Mushumir Butt
