Shiba Inu (SHIB) has dropped 10% over the past seven days, but it remains the second-largest meme coin in the market, second only to Dogecoin. Despite the recent pullback, SHIB's RSI has been steadily rising, indicating that buying momentum is improving and market sentiment may be shifting.
Whale activity has stabilized after a brief decline, indicating that both accumulation and distribution have paused, which could lead to short-term price consolidation. As SHIB trades within a certain range, breaking through key resistance levels could open the door for a 29.5% upside.
Shiba Inu burn rate skyrockets 100% fueling market optimism
According to the latest data from Shibburn, the Shiba Inu burn rate has increased by approximately 97%, highlighting the significant impact on the circulating supply of the token. Data shows that as many as 6.26 million SHIB have been sent to a burn address, indicating these tokens have been permanently removed from circulation. In summary, the soaring burn rate brings hope for the future price trend of this asset, adhering to the laws of supply and demand.
In context, the SHIB token burn mechanism focuses on reducing the market supply of the dog-themed meme token, which many believe is the reason for the asset's underperformance over the years. Additionally, other optimistic ecosystem developments have injected confidence among investors regarding the future trend of cryptocurrencies.
Shiba Inu RSI is currently neutral but rising
The Shiba Inu Relative Strength Index (RSI) is currently at 52.6, a significant increase from 41 two days ago. This increase reflects a noticeable shift in market sentiment, with buying momentum strengthening after a period of relative weakness.
RSI is currently in a neutral zone, indicating that neither buyers nor sellers have overwhelming control. However, the upward trend suggests that the short-term situation for SHIB prices has improved.
RSI is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100. Values above 70 indicate overbought conditions, which may lead to a price correction, while values below 30 indicate oversold conditions, typically signaling a rebound.
Shiba Inu's RSI is at 52.6, placing the token in a balanced range. If buying pressure continues to increase, there is room for further upside. However, a neutral RSI also means the price may stabilize unless there is a strong catalyst to push momentum in either direction.
SHIB whales stabilize after three days of decline
From December 14 to December 19, the number of addresses holding at least 1 billion SHIB increased from 10,861 to 10,930, indicating significant accumulation by large holders during this period.
This growth indicates that major investors (or 'whales') have increased their confidence in SHIB, as these investors often play a significant role in driving market trends with their large holdings. This accumulation may suggest bullish sentiment and support price stability or upward momentum.
However, the number of SHIB whale addresses began to decline after peaking at 10,930 on December 19 and has stabilized at 10,875 over the past two days. The recent stability suggests that both accumulation and distribution by whales have paused, indicating that whales may be waiting for clearer market signals before taking further action.
In the short term, this may indicate that the price of Shiba Inu could consolidate, as the lack of noticeable whale activity may reduce volatility and momentum in either direction.
SHIB Price Prediction: Potential Upside of 29.5%
SHIB price is currently trading in a narrow range, with resistance at $0.000024 and support at $0.00002259, defining its immediate boundaries.
If the support level of $0.00002259 fails to hold, the second-largest meme coin in the market may face further downward pressure, potentially dropping to $0.00001985.
SHIB Price Analysis. Source: TradingView
Conversely, if the SHIB price can break through the resistance level of $0.000024, it may gain upward momentum and test the next level of $0.000026.
If this level is exceeded, the price may continue to rise to $0.0000298, indicating a potential upside of 29.5%.
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