Nov 21, 2024

6thTrade

Shiba Inu (SHIB) is gaining bullish momentum as traders anticipate a potential breakout, fueled by Bitcoin's new all-time high and key on-chain developments.

Burn Rate Soars by 209%

Over the past 24 hours, Shiba Inu’s burn rate surged by 209%, with 11.6 million SHIB removed from circulation, according to Shibburn data. This significant reduction in supply aligns with growing market enthusiasm and sets the stage for a potential price rally.

Bull Flag Pattern Suggests 50% Upside

Crypto analyst Ali Martinez has identified a bull flag pattern in Shiba Inu’s price action, suggesting a possible breakout. Martinez predicts a move to $0.000037 if SHIB successfully breaches the $0.000025 resistance level.

Supporting this bullish outlook, Martinez highlighted a recent withdrawal of 1.67 trillion SHIB from exchanges, as tracked by Santiment. Historically, such large-scale withdrawals have preceded significant price spikes, including a 62% rally in the past.

Whale Activity Drives Confidence

On-chain analytics platform Bubblemaps revealed a whale holding 10% of the SHIB supply, valued at approximately $2.5 billion across 150 addresses. This whale initially owned 50% of the SHIB supply at the token’s launch in July 2020, further emphasizing the impact of large holders on SHIB’s price dynamics.

Additionally, marketing lead Lucie noted a single-day transfer of 1.6 trillion SHIB off exchanges. Similar movements in the past have coincided with significant price increases, bolstering optimism for a potential rally.

On-Chain Metrics Show Mixed Signals

While certain metrics, such as daily active addresses (-9.7%) and large transaction volumes (-71.3%), indicate slight declines, other data points signal positive growth:

  • Daily transactions tracked by Shibariumscan increased from 4.49 million to 4.66 million within 24 hours.

  • Transactions valued at over $100,000 decreased from 576 to 332 in a single day, suggesting temporary caution among larger investors.

The Path Ahead: Key Resistance at $0.000025

Martinez concludes that a sustained close above $0.000025 could trigger a 50% price jump, propelling SHIB to $0.000037. This would mark a significant recovery and reaffirm Shiba Inu’s growing prominence in the crypto market.

As SHIB continues to garner attention from whales and retail investors alike, the coming days will determine whether it can maintain its bullish momentum and achieve new heights.