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Shiba Inu (SHIB) is experiencing pivotal momentum as technical indicators and on-chain metrics align, suggesting a possibility for substantial price movement.
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The cryptocurrency has recorded a remarkable 6,223% increase in its burn rate, further fueling investor interest amid ongoing market dynamics.
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According to COINOTAG analysts, “If SHIB successfully breaks the $0.00002275 resistance, it could pave the way for an impressive rally towards $0.00004.”
Shiba Inu (SHIB) shows bullish potential with strong technical indicators and on-chain metrics, indicating a possible price rally in the near future.
Technical Indicators Signal a Bullish Trend for SHIB
The daily chart of Shiba Inu reveals a **golden cross formation**, a technical pattern often predictive of upward price trends. This occurs when the 50-day moving average crosses above the 200-day moving average, signaling potential bullish momentum.
Currently, SHIB is testing a crucial resistance level at $0.00002275. This price has previously acted as a significant support zone, making it vital for SHIB’s upcoming price action. A successful break above this level could trigger further upside towards the $0.00004 mark, a price point not seen since its earlier rallies.
Source: TradingView
The Relative Strength Index (RSI) is also noteworthy, currently positioned at 66.26, reflecting robust buying enthusiasm. This level is close to the threshold of being deemed overbought, which typically indicates a potential correction. Nonetheless, should buying momentum persist, SHIB could solidify its upward trend.
Source: TradingView
Positive On-Chain Activity Supports SHIB’s Price Dynamics
On-chain metrics for Shiba Inu demonstrate a **50.91% positive price-DAA divergence**, which indicates a rising engagement within the network as SHIB’s price increases. This uptick is a strong signal of growing investor interest and highlights a constructive outlook for SHIB’s market activity.
Historical data suggests that such divergences often correlate with bullish price movements, implying that growing on-chain engagement is strategically aligning with favorable price appreciation.
Source: Santiment
Moreover, Shiba Inu’s exchange reserves have seen a modest decline of **0.46%** over the last 24 hours, currently at **138.75 trillion tokens**. This contraction in exchange supply indicates diminishing selling pressure and suggests a strong accumulation phase among investors.
As fewer tokens are held on exchanges, the potential for a continued bullish rally increases, setting a technical stage for price appreciation.
Source: CryptoQuant
Market Sentiment Indicates Increasing Speculative Interest
The overall market sentiment surrounding Shiba Inu continues to be positive, evidenced by a **4.85% increase in open interest**, currently reaching **$101.71 million**. This uptick indicates increased speculative activity and suggests that investors are positioning themselves for potential price increases for SHIB.
The convergence of strong market sentiment alongside bullish technical patterns suggests an optimal framework for a possible breakout in SHIB’s value.
Source: Coinglass
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Conclusion
Shiba Inu is at a critical juncture, supported by its golden cross, decreasing exchange reserves, and positive on-chain divergence. If SHIB manages to decisively breach the $0.00002275 resistance, the next major target could be the psychological barrier at $0.00004.
Nonetheless, traders are advised to exercise caution as resistance levels and the overbought RSI condition may present short-term challenges. Nevertheless, Shiba Inu appears well-positioned to sustain its upward momentum in the coming sessions.
