Shiba Inu (SHIB) Price is Back in the Crosshairs After Technical Signals and On-Chain Metrics Suggested a Potential Upward Movement

SHIB price is back in traders' crosshairs after technical signals and on-chain metrics suggested a potential upward movement.

Shiba Inu (CRYPTO: SHIB) price is back in traders’ crosshairs after technical signals and on-chain metrics suggested a potential upward movement.

According to recent analysis by a crypto market expert, SHIB has formed a bullish falling wedge pattern on the daily chart.

Also, within a single day, the burn rate of the token experienced an explosion that exceeded 1300%, thus accelerating its overall momentum.

The upcoming rally might peg SHIB above the $0.000034 mark where it will consolidate.

Recent price action and blockchain activity have supported the theory of a trend reversal. The meme-based cryptocurrency has gained over 14.39% in the past seven days. At the time of writing, it was trading around $0.00001407.

The developments in the chart pattern and the token burn metrics have increased attention from both traders and analysts.

Shiba Inu Price Rallies Over 167%

Shiba Inu price has formed a falling wedge pattern, which is commonly viewed as a bullish reversal setup in technical analysis.

The pattern is formed by two downward-sloping trendlines that converge, indicating a narrowing price range.

Technical analysts usually interpret a falling wedge pattern in Shiba Inu price as an indicator signaling potential bullish reversals.

The trend reflects downward sloping lines which progressively approach each other as they create a narrowing price range.

This pattern, on the whole, shows decreasing selling pressure and signals potential for the price to move upward in the future.

Now, on SHIB’s chart, this wedge has been forming since December and appears to be reaching its breakout point.

Analyst RealAllinCrypto shared an annotated chart showing where SHIB recently broke above the upper resistance of the wedge.

This breakout is seen as a confirmation of a trend shift. A vertical projection from the lowest to the highest point in the wedge was used to calculate a potential target of $0.00034.

This would mean a price increase of approximately 167% from the breakout area.

The chart also shows a similar historical wedge pattern that led to a substantial price rally. Volume analysis suggests that buying interest may be returning, as slight increases were noted during the breakout.

If the current momentum continues, the pattern could serve as a foundation for further upward price action in the short term.

SHIB Burn Rate Soars Over 1300%, Fueling Supply Reduction

In tandem with technical signals, Shiba Inu’s burn rate surged 1300% in the past 24 hours, with 27.82 million tokens removed from circulation.

Data from Shibburn, a platform tracking token burns, confirmed this spike in activity. The sharp increase in burn rate reflects a growing effort to reduce SHIB circulating supply, which can add deflationary pressure to the meme coin.

A reduction in supply, particularly when paired with growing demand or improved sentiment, may influence the meme coin’s market value.

Burn activity is considered a strategy to improve the token’s appeal by tightening the available supply.

The significant increase of SHIB burns occurred simultaneously, with general market growth that affected major cryptocurrencies, including Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

This adds another layer to SHIB’s bullish outlook following the burn surge which happened during a technical breakout period.

A recent analysis announced that SHIB eyes a 512% surge toward $0.00081 if the token can successfully move past the neckline resistance between $0.00015 and $0.00017.

However, over 22.7 trillion tokens held by wallets in the $0.00013 to $0.00015 range could exert strong selling pressure and delay the upward move.

Current Price and SHIB Price Prediction

The current trading value of SHIB is at $0.00001411. During the past week SHIB maintained a 15% growth which supports the broader enthusiasm within the crypto industry.

With both the technical breakout and the sharp burn increase aligning, conditions appear favorable for SHIB’s next move.

Another analyst, CryptoELITES, highlighted that Shiba Inu has entered a key buy zone with the potential for a 17x rally from current levels.

The projection depends on SHIB maintaining its support and breaking above a key resistance at around $0.0003.

If successful, the price could reach as high as $0.00021, being driven by bullish technical signals and a tightening token supply.

Additionally, Crypto analyst CryptoELITES has recently reaffirmed his predicted trajectory for Shiba Inu price.

The crypto analyst insisted that top meme coin will enter a buy zone that could trigger a substantial price increase to reach $0.00023, highlighting a 1