Shiba Inu (SHIB) continues to hold a bullish technical structure despite a 3.18% dip today, currently trading at $0.0000112. The meme coin has steadfastly defended the key psychological support level of $0.00001, with market watchers now eyeing a potential 18% surge toward monthly highs. The catalyst? A jaw-dropping 12,000% spike in the SHIB burn rate. But is this rally truly imminent?
Bull Flag Pattern Suggests 18% Upside Potential
SHIB price appears poised for an 18% upward move, thanks to a developing bull flag pattern visible on the four-hour chart. This technical formation typically indicates a brief consolidation period before the resumption of an uptrend.
Key observations:
- The pattern's measured move suggests a target of $0.0000138 (18% above current levels)
- A breakout would mark SHIB's highest price point in 30 days
- Critical resistance awaits at $0.000019 (upper boundary of the flag)
👉 Why technical traders are watching SHIB closely
The 50-day SMA ($0.0000113) and 20-day SMA ($0.00001252) present immediate hurdles. Historical data shows that decisive closes above these moving averages often precede significant gains. However, the RSI reading of 44 suggests lingering bearish momentum that could delay confirmation of the pattern.
SHIB Burn Rate Explodes 12,833% – What It Means
Recent data reveals extraordinary activity in SHIB's token economics:
- 12,833% increase in burn rate over 24 hours
- 13 million SHIB removed from circulation
- 75 million SHIB burned in the past week
This supply reduction coincides with promising network activity:
- Daily active addresses up 27% (2,777 → 3,534)
- Shibarium TVL grows from $1.77M to $1.96M
👉 How token burns impact cryptocurrency prices
The simultaneous surge in burn rate and network usage suggests growing adoption and could create fundamental support for SHIB's price. As circulating supply decreases and network activity increases, these factors may combine to fuel the anticipated rally.
FAQ: Your Shiba Inu Questions Answered
Why is SHIB price dropping today?
The decline reflects broader market weakness impacting Bitcoin, Ethereum, and most altcoins.
How does the burn rate affect SHIB price?
Increased burns reduce available supply while signaling network activity—both potentially bullish indicators.
Can SHIB recover from this downtrend?
A breakout above $0.000019 resistance could confirm the bull flag pattern and trigger an 18% rally.
What other factors support SHIB's growth?
Growing Shibarium TVL and increasing active addresses demonstrate ecosystem development beyond just meme coin status.
Is the current RSI concerning?
While the 44 reading shows bearish momentum, it doesn't invalidate the bullish pattern—just suggests potential delay in confirmation.
What's the significance of the $0.00001 support?
This psychological level has held strong through market volatility, creating a solid foundation for potential upside.