Shiba Inu Could Rise 18% If Key Resistance at $0.000017 Is Successfully Retested

• Shiba Inu (SHIB) is witnessing a bullish revival with a notable increase in its burn rate and significant price action, aiming for a potential price surge.

• The Shiba Inu community has recently demonstrated strong engagement by burning over 16 million SHIB tokens, which may influence supply dynamics positively.

• “The recent trading volume surge indicates a highly engaged community, eager to push Shiba Inu to new price levels,” noted analysts from COINOTAG.

Shiba Inu’s burn rate rises as bullish momentum builds; traders eye key resistance levels amid substantial community engagement and market sentiment shifts.

Shiba Inu’s Recent Burn Surge and Its Implications

Recently, the Shiba Inu community took a significant step in reducing the circulating supply by burning approximately 16,479,283 SHIB within a 24-hour timeframe, as reported by blockchain data tracker Shibburn. Over the past week, a total of 61,082,353 SHIB was permanently removed from circulation.

Token burning is essential as it effectively reduces the overall supply of a token, which can foster long-term price appreciation and combat inflation. The recent burn rate is poised to create buying pressure, potentially driving the price further upward as less supply could meet rising demand.

Price Action and Key Resistance Levels for SHIB

At the time of writing, SHIB’s price stood at approximately $0.0000165, representing a 5.10% increase within 24 hours. This surge in price broke through a crucial resistance level that the memecoin had been struggling to surpass, resulting in an 80% spike in trading volume.

Significantly, this resistance level coincides with the neckline of an ascending triangle pattern, where SHIB has successfully broken through on the four-hour chart and is currently engaged in a retest phase.

Source: TradingView

Drawing from recent price dynamics and historical performance, a successful retest above $0.000017 could confirm renewed bullish momentum, potentially paving the way for an 18% price increase towards the $0.000020 mark.

Current Market Sentiment and Major Liquidation Levels

As reflected in on-chain data from Coinglass, current market sentiment is distinctly bullish following SHIB’s recent breakout. Notably, intraday traders with long positions are reported to be over-leveraged at $0.0000154, with approximately $2 million in open positions, providing a stable support level.

Source: Coinglass

Conversely, short sellers’ positions are over-leveraged at $0.0000176, with around $940K in open positions, marking this as a vital resistance level. The potential for liquidations exists should the price deviate notably. However, with the prevailing positive sentiment, it seems bullish traders currently maintain control, increasing the likelihood of triggering short position liquidations as SHIB continues its journey upwards.

Conclusion

The recent developments in Shiba Inu, underscored by a substantial burn rate, strong community engagement, and significant price action, signal a potentially transformative phase for this memecoin. As the market braces for either consolidation or a bullish breakout, traders and investors alike should remain vigilant of key support and resistance levels to navigate the evolving landscape effectively.