Despite Broader Crypto Market Uncertainty, SHIB Appears to Be Defying Gravity

In the past seven days, Shiba Inu's burn mechanism has removed more than 330 million SHIB tokens from circulation.

The broader crypto market uncertainty does not seem to be affecting Shiba Inu (SHIB) despite signs of renewed upward momentum in May.

The burning mechanism of Shiba Inu has seen more than 330 million SHIB tokens removed from circulation in the past seven days. According to data from Shibburn, this represents a 364% increase in the burn rate, one of the most dramatic weekly upticks seen this year.

Shiba Inu's burning mechanism has seen more than 330 million SHIB tokens removed from circulation in the past seven days

This burning activity, which is designed to reduce the circulating supply, is a central pillar of Shiba Inu's long-term tokenomics.

“The burn activity reflects growing community involvement and supports the token’s deflationary narrative,” stated analysts at The Coin Republic.

While token burns alone aren't a direct catalyst for price action, they often coincide with broader bullish trends when accompanied by rising demand and volume—both of which SHIB currently enjoys.

Shiba Inu's trading volume spiked to $138 million over the last 24 hours, signaling renewed investor interest. This surge in volume is crucial, as it provides liquidity for traders and helps reduce spreads in high-volatility environments.

Shiba Inu is currently trading at $0.00001322, marking a 3.5% daily increase, according to Brave New Coin data. The price now hovers slightly below a key resistance level at $0.0000142, which many analysts are watching closely for a breakout confirmation.

“Typically, higher volume indicates a greater appetite from both retail and institutional traders,” said one market analyst. “In the case of SHIB, this could reinforce the recent bullish structure forming on its technical chart.”

May : A Historically Strong Month For Shiba Inu

SHIB has a well-documented history of strong May performance. Of the past four years, the token averaged a 61% rise in May, as per information from Cryptorank. Interestingly, it went up by 355.4% in May 2021 and rose by 13% in May 2024, showcasing strength in its seasonal bullish trend.

These successive wins have encouraged numerous traders to anticipate an equally impressive display this month. Caution is advised since past trends aren't guaranteed to continue. However, the convergence of increased burns, trading volumes, and a strong historical month presents a hopeful setup for SHIB bulls.

Technically, SHIB recently broke above its 50-day Exponential Moving Average (EMA), a bullish sign of mid-term upside momentum. The indicator has acted as dynamic support in the past when rallies occurred, and its overtaking suggests a possible trend reversal.

Shiba Inu is also moving in the top section of a horizontal channel, which ranges from $0.0000118 to $0.0000142. A decisive break above the $0.0000142 resistance can pave the way for a more aggressive push to the upside.

Besides, technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are showing mildly bullish signals.

Although the weekly RSI sits at 43, which typically reflects a neutral to slightly bearish outlook, the positive MACD crossover and rising price action suggest underlying strength.

Long-Term Outlook: Mixed But Improving

While short-term signals are bullish, long-term Shiba Inu price forecasts are uncertain. CCN warns that SHIB may still be in a more widespread corrective phase, perhaps part of a W-X-Y wave structure from its 2021 all-time high. While their models have SHIB dropping as low as $0.0000029, an optimistic year-end target is $0.0000058.

Shiba Inu (SHIB) is trading at around $0.00001322, up 3.58% in the last 34 hours at press time.

Despite this wide margin of forecasting, SHIB has already increased by 50% since May of 2023, with a modest daily rate of 0.07%. If the trend persists, it may support a smooth, if gradual, upward trend in the years to come.