Shiba Inu (SHIB) Burn Rate Soars 1500%, Key Levels Determine Future Trends

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Recently, the burn rate of Shiba Inu (SHIB) has skyrocketed by 1500%, significantly reducing the circulating supply and igniting investor enthusiasm and market speculation about a potential rebound. This change coincides with a breakout of the trendline on the SHIB weekly chart, suggesting a possible bullish breakout ahead.

Surge in Burn Rate and Price Volatility

As of now, the trading price of SHIB is $0.00002289, having risen by 2.02% in the past 24 hours. Despite the surge in the burn rate generating positive momentum, the price breakout still faces challenges from key resistance levels. Historically, spikes in burn rates typically lead to short-term gains but are also accompanied by significant volatility. For instance, last week SHIB surged by 15% at one point, but subsequently pulled back over 3% due to profit-taking.

Price Action Analysis: Is a Breakout Imminent?

SHIB has broken through a key trendline and retested it, showing strong upward potential. The Bollinger Bands on the weekly chart are narrowing, indicating a breakout may be imminent. Meanwhile, the stochastic RSI indicator shows that there is still room for price to rise before entering the overbought territory.

However, SHIB needs to break through the critical resistance level of $0.00003338 to further enhance bullish momentum. Failing to do so may lead to continued consolidation or a pullback.

Network Activity and Market Sentiment

The number of active addresses for SHIB has increased by 1.44% in the past 24 hours, indicating a rise in market participation, which typically signals potential for price increases. Additionally, trading volume has grown by 1.56%, while foreign exchange reserves have slightly declined by 0.08%, showing that investors are more inclined to hold tokens, easing selling pressure and creating favorable conditions for a potential rebound.

Conclusion: Is SHIB Ready to Trigger a Rebound?

The surge in SHIB's burn rate, increased network activity, and confirmed trendline breakout lay the groundwork for a possible rebound. However, breaking through the key resistance level of $0.00003338 is crucial in determining the future trend. If SHIB can maintain its current momentum and fully leverage the positive market sentiment, a strong rebound is expected.

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