Shiba Inu (SHIB) Price Attracts Market Interest as It Forms a Head and Shoulders (H&S) Pattern

Shiba Inu (SHIB) price is attracting market interest. The meme coin is creating a head and shoulders (H&S) shape. This classical pattern is usually indicative of trend reversal if ratified.

Shiba Inu (SHIB) price has been attracting attention in the market recently, as it is forming a classical head and shoulders pattern. This pattern is usually encountered in technical analysis and it can be indicative of trend reversal if ratified.

At the same time, SHIB’s burn rate is also increasing, and trading volumes have surged. This can be attributed to the interest of traders in the token, especially with the new optimism around meme coins.

Shiba Inu Burn Rate Surges as 330 Million SHIB Removed

SHIB’s burn rate has surged in recent weeks, with 330 million tokens being sent to the dead wallet. This marks a 364% increase, according to data from Shibburn. Token burns reduce the circulating supply, potentially boosting long-term value as demand grows.

The burns are an integral part of Shiba Inu’s strategy, as it seeks to cut down the huge token supply to create scarcity. Such a situation can also raise the value of every left token as long as demand is high. The most recent burn was one of the largest this season, indicating that the SHIB community is increasingly committed to a deflationary model.

Decreasing the circulating supply is in line with the project’s long-term objectives, which include demolishing more zeros from the SHIB price. This strategy is important to the Shiba Inu ecosystem, setting it apart from other meme coins that do not usually have a structured tokenomics plan.

Technical Analysis Points to Potential Breakout

Technically, the SHIB price is forming a head and shoulders pattern. This pattern includes a left shoulder, a head, and a right shoulder. The neckline is at $0.00001550, a critical resistance level that SHIB needs to breach to confirm the breakout.

A breakout above this neckline could push the SHIB price towards the $0.00003343 target. This target coincides with the upper boundary of the descending channel that has enveloped the SHIB price for months. Breaking this level could suggest a major trend reversal.

The latest analysis from TradingView contributor RockyBullCrypto identified this setup, highlighting that the SHIB price is approaching a crucial breakout point. Such a trend can signal a shift in market sentiment, indicating that buyers may be gaining momentum after a prolonged downtrend.

Trading Volume Spikes as Bullish Sentiment Grows

The SHIB trading volume has also increased significantly, with the 24-hour trading volume reaching $407 million. This marks a 165% increase, according to CoinMarketCap. High trading volumes are a key indicator of market interest and provide the liquidity needed to drive prices higher.

This surge in volume can be attributed to the new interest in the SHIB token, making the possibility of fake breakouts slim, as it is confirmed by the buyer’s interest. It also contributes to a more stable price regime, ultimately offsetting volatility.

The token is currently worth $0.00001486 at market value, showing 10.97% daily growth. These figures might indicate the increasing interest of traders in SHIB, knowing there will be further upside.

The value of SHIB’s market cap is now $8.75 billion.

The fib indicator is also showing that the price is approaching the 0.5 fib level, which could act as another resistance level.

Finally, the RSI indicator is currently in oversold territory, which could put some pressure on the sellers to allow the buyers to take over the trend and push the price upwards.

This analysis is based on the technical indicators and market trends, and it provides insights into the potential movements of the SHIB token. However, traders and investors are advised to conduct their own research and consider multiple perspectives before making any trading decisions.

The general environment of the market is also positive, with increased retail and institutional interest in meme coins, and the development of the Shibarium Layer-2 scaling solution putting community members in a frame of mind that is more optimistic than usual, which can sustain further gains if the current trends continue.