- 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.
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