Shiba Inu’s burn rate has seen a significant surge, hinting at renewed momentum within the community. Despite a slight drop in price, on-chain metrics show promising signs of increased user engagement. New addresses, active addresses, and zero-balance addresses have all seen significant spikes, indicating both fresh inflows and renewed activity from dormant users. Historically, such increases have often preceded price volatility, making this a positive signal for the token’s future growth.
On the technical side, SHIB appears to be forming a bullish cup and handle pattern, with a potential breakout target at $0.00001709. However, there is a crucial support level at $0.00001051 that needs to hold for this pattern to remain valid. The next few trading sessions will be crucial in determining whether SHIB can maintain its bullish momentum or face renewed selling pressure.
Exchange reserves have decreased slightly, suggesting accumulation by long-term holders, while the sharp drop in 24-hour Netflow indicates recent selling intent. Liquidation data also show a heavily bullish bias, with long liquidations significantly outweighing short liquidations. This imbalance in leverage could lead to a swift shakeout if the market sentiment shifts.
In order for Shiba Inu to sustain its upward momentum, it will need to break through the resistance level at $0.00001411 with strong volume and sustained inflows. Exchange and derivatives data highlight the potential risks associated with over-leveraged optimism, emphasizing the importance of caution in trading decisions. Until the token can break through key resistance levels with convincing strength, a more cautious approach may be advisable.
Overall, Shiba Inu’s recent uptick in burn rate and address activity bodes well for its future growth potential. However, traders must be mindful of the potential risks highlighted by exchange and derivatives data. By maintaining a balanced perspective and closely monitoring key support and resistance levels, investors can navigate the market with greater confidence and reduce the impact of potential downside risks.
