Shiba Inu (SHIB) price has gained by 20.4% to trade at $0.00001603 at the time of writing. The recent gains came amid a cryptocurrency market recovery in the last 48 hours. Besides the broader market recovery, a recent X post by Elon Musk spiked interest in Dog-themed meme coins.
Will Shiba Inu Post A 498% Rally?
According to analyst Javon Marks on X, Shiba Inu is on the verge of a major breakout rally that could see prices climb by more than 498%.Â
The analyst pointed to the formation of a falling wedge pattern on the Shiba Inu daily chart that confirmed a bullish divergence. In the analysis, the trader noted that if the bullish thesis proves true, SHIB could reach $0.000081.
âPrices of Shiba are currently nearing the converging or breakout point of a massive falling wedge pattern on the daily (1D Chart). This can spark the next phase of heavy bullishness, with a target at $0.000081 still in play due to an already holding larger breakout,â the analyst said.Â
$SHIB (Shiba Inu)'s â6X:Prices of Shiba are currently nearing the converging or breakout point of a massive Falling Wedge pattern on the daily (1d Chart) and with a recent confirmation of a Regular Bullish Divergence, this can be pointing to a bullish breakout!This can spark⊠pic.twitter.com/sAUSyrH4q0
â JAVON MARKS (@JavonTM1) August 17, 2024
The SHIB four-hour chart shows that ETH has been consolidating after recovering from the August 5 crash. For a bullish trend to be confirmed and set the pace for a massive rally, SHIB must break out from the upper trendline of the parallel channel. Breaking below this channel could trigger further price declines.
The Moving Average Convergence Divergence (MACD) line is flipping bullish as it has moved above the signal line. The potential for a sustained uptrend is further seen with the MACD histogram bars currently in the green region.
The Relative Strength Index (RSI) shows that buying activity remains relatively weak. The RSI is currently at 54, showing neutral market sentiment. The RSI line also tips south on the four-hour chart, hinting at a possible reversal.Â
SHIB Burn Rate Soars 1,000%
The recent SHIB gains come amid a notable increase in the Shiba Inu burn rate. Data from Shibburn shows that in the last 24 hours, 72,020,410 $SHIB tokens have been removed from the circulating supply, representing an over 1,000% increase.
The rise in the SHIB burn rate hints towards increased network usage. The weakening supply could also defend the long-term bullish thesis around Shiba Inu. Rising demand amid declining supply could see SHIB soar to a record high.
