- Shiba Inu yielded 10% weekly gains to holders with an increase in trade volume and the SHIB burn rate.
- Shiba Inu trade volume increased 116% and the burn rate increased 1,400% on January 9, 2023.
- SHIB price is on track to break out of the ascending channel and bulls are set to hit the target of 61.8% Fibonacci extension at $0.00000912.
Shiba Inu, the second-largest meme coin in the cryptocurrency ecosystem, is currently in an uptrend. Bitcoin and Ethereum held their ground over the past week as altcoins like Shiba Inu yielded double-digit gains for holders.
Also read: Shiba Inu developers share Shibarium update, the layer-2 solution will scale a $4.9 billion market
Shiba Inu price could break out according to these indicators
Shiba Inu, a Dogecoin-competitor and meme coin is on track to break out of its ascending channel. The meme coin’s market capitalization is currently $5.2 billion and SHIB is on track to climb to the 61.8% Fibonacci extension at $0.00000912.
SHIB/USDT price chart
As seen in the chart above, Shiba Inu price climbed above two long-term Exponential Moving Averages at 50-day EMA and 200-day EMA. Relative Strength Index (RSI), the momentum indicator is close to 70, and that implies SHIB is near oversold. Therefore, while betting on the bullish potential of SHIB traders need to be cautiously optimistic.
SHIB price falling below the lower trendline of the ascending channel or 50-day and 200-day EMAs could invalidate the bullish thesis of the meme coin.
These indicators reveal SHIB’s rising adoption
Shiba Inu’s trade volume climbed 116% in the 24-hour period between January 8 and January 9, 2023. Activity on the SHIB network climbed and the spike in trade volume signals rising utility and adoption of Shiba Inu.
Burn mechanism removes SHIB tokens from circulation permanently, reducing the supply and influencing Shiba Inu’s price. Based on data from Shibburn.com, the burn rate climbed 1,400% on Sunday. A spike in burn rate implies a large volume of SHIB tokens were burnt and permanently pulled out of circulation. While the USD equivalent of the SHIB tokens burnt is not as significant, it reduces selling pressure on the meme coin.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Bitcoin whales could prevent BTC price first monthly loss of 2023 through this move
Bitcoin price is inching towards the first monthly loss of 2023. At press time, BTC price is 4.4% below $29,233, its price on May 1. If BTC fails to regain lost ground, the asset is in for its first monthly loss of the year.
Cardano price rallies with surge in DEX volume and new meme coin launch
Cardano-based decentralized exchange Minswap registered a large spike in transaction volume since the beginning of May. Between May 1 and 30, transaction volume surged from $10 million to $72 million.
Shiba Inu eyes recovery as holders pull more than 44 trillion tokens off exchanges
The reserve of Shiba Inu tokens across cryptocurrency exchange platforms has consistently declined between March and May. SHIB holders have pulled 44.53 trillion tokens off exchanges.
XRP likely set for price rally as network activity heats up
XRP Ledger’s native token XRP registered an increase in address activity on Monday, when more than 490,000 addresses interacted on the network, signaling an impending price rally.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.