Shiba Inu burns 6,000% more: Now can SHIB break resistance to rally?
SHIB's bullish golden cross and RSI suggest a protracted rally.
On-chain indicators and lower exchange reserves indicate confidence and accumulation.
Shiba Inu [SHIB] has made headlines with a 6,000% burn rate increase and excellent price recovery. SHIB fell 1.25% to $0.00002521 at press time.
SHIB is reaching a major resistance level with strong technical indicators and on-chain activity despite this modest retracement. The key is whether SHIB can break through and maintain its rise.
Technical indications support SHIB's rise. Shiba Inu's daily chart shows a golden cross, when the 50-day moving average exceeds the 200-day. This bullish indication frequently indicates sustained growth.
At $0.00002275, SHIB meets a key resistance level that was formerly a support. Breaking above this zone might push SHIB to $0.00004, a level not seen since its highs.
At 66.26, the Relative Strength Index (RSI) indicates strong purchasing. This is encouraging, however RSI hitting overbought levels may foreshadow a downturn.
On-chain activity diverges positively.
On-chain data from Shiba Inu shows a 50.91% positive price-DAA divergence. It shows increased network activity as SHIB's price increases, indicating more user involvement.
Bullish price activity usually follows divergences, indicating investor optimism.
Shiba Inu exchange reserves fell 0.46% to 138.75 trillion tokens in 24 hours. This fall suggests considerable accumulation due to diminished selling pressure.
Open interest rose 4.85% to $101.71 million, indicating optimistic market sentiment for Shiba Inu. This rise in open interest indicates increasing speculative activity and SHIB's growth potential.
Thus, positive sentiment and technical strength suggest a breakthrough.
The golden cross, lower exchange reserves, and favorable on-chain divergence position Shiba Inu for more gains. SHIB might reach $0.00004 if it breaks over $0.00002275.