The destruction rate of Shiba Inu [SHIB] surged by 3,679% in 24 hours, causing a sharp decrease in its circulating supply. The price also rose, but faced resistance at $0.00002668. The transfer of 4 trillion SHIB caused market turmoil and potential risk of a pullback.
Shiba Inu (SHIB) has been on a bullish run over the past 24 hours, reaching an intraday high of $0.00003046 before encountering resistance. However, with the Federal Reserve signaling a steady interest rate stance, some investors are now questioning whether SHIB’s gains can be sustained, or if it will pull back.
SHIB's Key Resistance Levels and Bullish Indicators
The surge in SHIB’s price has brought it close to the critical resistance level of $0.00003076. This level is a major hurdle; however, if SHIB breaks above it, it could open the way to the next target of $0.00004587.
Clearing this resistance could signal a continuation of the strong bullish momentum, thereby attracting more buying interest.
Conversely, failure to break above this threshold could result in a pullback and possibly consolidation around lower support levels. Traders are watching this closely as the outcome could influence SHIB’s near-term trajectory.
The Average True Range (ATR) is currently 0.00000237, indicating rising volatility, reflecting increased trading activity around SHIB. Increased volatility suggests that large price swings may continue, especially as SHIB approaches significant resistance levels.
Therefore, traders should be prepared for potential volatility as market participants react to SHIB's next move.
Additionally, Shiba Inu’s moving averages recently experienced a bullish crossover, with the short-term 9-day moving average moving above the 21-day moving average.
This crossover is a positive technical indicator and is often seen as a precursor to continued price gains. Therefore, if SHIB can maintain its current momentum, this setup would strengthen its potential upside.
Is there a risk of Shiba Inu prices rising?
A massive transfer of 4 trillion SHIB tokens, worth about $99 million, between two unknown wallets has sparked speculation in the cryptocurrency community. Large whale transactions often cause market volatility as they can signal an intention to sell or transfer positions.
When whales move large amounts of tokens, it tends to cause anxiety among small investors, who worry that the moves could trigger a sell-off.
The timing of the transfer coincides with the recent rise in SHIB prices, which may cause investors to be more cautious. After the transaction, SHIB prices plummeted by nearly 5%, and the market value fell by 5.30% to US$14.19 billion.
Market sentiment and open interest indicate optimism
Highlighting the growing optimism in the market, open interest surged 14.38% to $94.83 million. High open interest suggests that traders are increasingly betting on the Shiba Inu's future performance, perhaps speculating that prices will continue to rise.
However, with increased open interest comes increased risk, as leveraged positions can magnify both gains and losses. Therefore, while optimism remains high, caution is advised due to the potential for increased volatility.
Can SHIB still maintain its upward trend?
While Shiba Inu's recent price surge and improved burn rate are encouraging, its future trajectory depends on breaking through key resistance levels and managing foreign exchange reserve dynamics.
The increase in active addresses and open interest indicates a positive outlook, but due to expected volatility, SHIB’s ability to sustain gains will depend on strong community participation and technical performance in the coming days.
SHIB is facing a critical resistance near $0.00002700, with technical indicators suggesting sustained bullish momentum.
Increased on-chain activity and rising open interest highlight strong market optimism and community support.
Bao recently said that the U.S. economy shows no signs of an immediate need for rate cuts, allowing the Fed to "make decisions carefully." The statement dampened expectations for a rate cut in December and also caused a small decline in the cryptocurrency market as investors weighed the impact of the move on digital assets, which typically benefit from a low interest rate environment. The market fell into a correction as the speech ended. The Fed's cautious attitude may keep some investors away from high-risk assets, which may slow the upward momentum of SHIB.
SHIB Price Prediction: The price may be $0.0000444 by the end of the year
At the time of writing, the Shiba Inu is trading at around $0.00002387, with the price having retraced around 6.7% in the past 24 hours as a result of Bao’s comments.
However, some analysts believe that the price of SHIB may rise to $0.0000444, a price target that coincides with the 25% Fibonacci retracement level. In addition, the lowest drop in October was $0.000015, and buyers entered the market at $0.0000158, which strengthened the bullish momentum.
Meanwhile, Investing Haven says Shiba Inu’s strength portends a super bullish 2025. The analyst’s accompanying chart suggests that SHIB could rally to $0.00007436 sometime next year. This target is still below Shiba Inu’s current all-time high (ATH) of $0.000088. However, cryptocurrency analyst Javon Marks predicts that SHIB will still rally to the ATH and surpass it.
