Shiba Inu (SHIB) has been grabbing attention as it holds steady amid a bounce-back for meme coins, and technical indicators point to a possible surge on the horizon. With a notable “golden cross” pattern forming and an uptick in SHIB token burns, analysts are increasingly optimistic about SHIB’s potential for gains in the coming weeks.
Investor Sentiment Shifts with Pro-Crypto Climate
Following Donald Trump’s victory in the U.S. election, market sentiment has shifted toward risk-on investments, sparking bullish trends across crypto assets, particularly meme coins. Investors expect the new administration’s crypto-friendly stance to ease regulatory pressures, providing favorable conditions for Shiba Inu and other major meme coins to flourish.
Adding fuel to the fire, the Shiba Inu community has ramped up token burns, reducing SHIB’s circulating supply. According to Shibburn data, the burn rate jumped an astounding 3,674% on Nov. 6, resulting in over 53,000 tokens permanently removed from circulation. This move aligns with Shiba Inu’s goal of driving up the token’s value through scarcity.
Technical Indicators Favor a Bullish Outlook for SHIB
Technical charts for Shiba Inu present a promising outlook, with SHIB continuing to trend along an upward trajectory. The token is close to forming a golden cross—a bullish signal often preceding significant price increases—as its 50-day and 200-day moving averages approach a crossover. In past occurrences, SHIB has experienced notable gains following this pattern, sparking hopes of a repeat performance.
SHIB’s futures open interest has also surged, hitting $51.1 million, signaling rising investor interest. If the token breaks through its next resistance level at $0.000021, analysts predict it could target the $0.00002940 range, a level not seen since May. This would mark a potential 54% gain from current levels.
However, caution remains crucial. A dip below the support level at $0.000015 would undermine the bullish case, signaling that sellers are regaining control.
Long-Term Momentum Driven by Burning and Growing Community Interest
The continued growth in Shiba Inu’s burn rate, coupled with rising demand and community engagement, may set the stage for longer-term price strength. As more tokens are burned, and the ecosystem expands with applications like Shibarium, SHIB could consolidate its position as a top meme coin, potentially offering substantial gains for patient investors.
In summary, Shiba Inu’s recent technical and fundamental indicators suggest it has the potential to capitalize on a favorable market climate. As always, investors should stay cautious, given the inherent volatility of meme coins.
