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Shiba Inu’s recent price action demonstrates bullish momentum, primarily driven by a favorable alignment with Fibonacci retracement levels and an ascending channel trend.
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The SHIB ecosystem faces challenges with a notable decline in its burn rate, which has implications for its long-term deflationary strategy.
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“The bounce from the crucial Fibonacci level indicates that the bulls are still in control,” stated a COINOTAG source, highlighting the importance of trading volume in sustaining the uptrend.
Shiba Inu [SHIB] demonstrates bullish potential as it maintains critical support levels while confronting a significant decline in its burn rate.
Current price dynamics of SHIB
The 0.618 Fibonacci retracement level serves as a critical support zone, signaling a possible continuation of the uptrend. SHIB’s bounce from this level, supported by trading volume, sets immediate targets at $0.00002715 (T1), $0.00003083 (T2), and $0.00003511 (T3).
Source: TradingView
Should the SHIB price fail to maintain above the 0.618 level, a retest of lower support could occur, potentially invalidating the current bullish trend. Monitoring SHIB’s position within the ascending channel will be crucial for traders trying to gauge future price movements.
Potential for bullish continuation
SHIB’s price remains firmly within the ascending channel, indicating sustained bullish sentiment as long as the price respects the lower trendline. A breach below this trendline could challenge the bullish outlook, bringing SHIB back toward $0.00002181.
Conversely, remaining within the boundaries of the channel can support further momentum towards higher resistance levels. A breakout above the upper channel could lead to heightened buying pressure, potentially pushing prices above $0.00003511.
Highlights on market sentiment and accumulation
Recent data highlights a mixed inflow and outflow pattern concerning SHIB. Spot inflows indicate short-term profit-taking occurring near resistance levels, while consistent outflows reflect ongoing accumulation by long-term holders.
This complex interplay helps maintain SHIB’s price stability despite external market pressures.
Source: Coinglass
Should there be a sudden spike in net inflows, this could signal increasing selling pressure as SHIB approaches $0.00002715. However, a balanced inflow trend paired with steady outflows could allow further gains toward T2 and T3. Traders are advised to stay alert to sudden changes in these metrics, which provide critical insights into market sentiment and price trajectories.
Funding Rates for SHIB have remained neutral to slightly positive, illustrating a balanced outlook among traders. Positive funding rates often indicate a willingness among traders to pay a premium to hold long positions, reinforcing a bullish sentiment. In SHIB’s case, stable funding rates reflect a cautiously optimistic sentiment, aligning with its recent price performance.
Source: TradingView
Market sentiment indicators, including the Fear and Greed Index, suggest moderate greed levels. While this reflects confidence among market participants, traders need to be cautious about potential overbought conditions. A sharp rise in greed could trigger a short-term correction, especially if SHIB struggles to break above $0.00002715 conclusively.
Implications for SHIB’s ecosystem goals
In another development, the Shiba Inu ecosystem is witnessing a notable dip in its burn rate, with only 9.38 million SHIB tokens burned on January 14, 2025, in stark contrast to previous days. This significant burn amount included a single largest burn of 8.91 million SHIB, indicating limited overall burning activity.
This decline represents a worrying 55% drop in the average daily burn rate, raising questions about the sustainability of the project’s deflationary objectives.
Meanwhile, Shibarium’s blockchain statistics convey stability, with over 791 million completed transactions and 2.095 million addresses. Yet, the absence of newly deployed contracts, coupled with just one verified contract that day, reflects a stagnation in developmental progress.
