Shiba Inu SHIB surges 5440 percent burn rate driving price rally

Shiba Inu (SHIB) has recently garnered significant attention from traders due to a remarkable surge in its burn rate, which has increased by 5,440%. This substantial reduction in the circulating supply of SHIB tokens has sparked optimism among holders, as the scarcity of the tokens is expected to drive up their value.

The burn rate surge has been a community-driven effort, aimed at reducing the overall supply of SHIB tokens. This reduction in supply is anticipated to create upward pressure on the price, as the demand for the remaining tokens increases. Traders are closely monitoring the price movements of SHIB, which has been hovering around $0.012834, with hopes of a potential breakout to higher price targets.

The bullish outlook for SHIB is supported by several converging factors. The 1-hour chart for SHIB/USDT shows a bullish setup, with the price rebounding from a strong support level at $0.012833. This level is closely aligned with the 100% Fibonacci retracement of $0.012723, reinforcing its importance as a key support level. The next target for SHIB is set at $0.013014, which corresponds to the 61.8% Fibonacci level. With the Relative Strength Index (RSI) at 33.87, indicating oversold conditions, a breakout above $0.012927 could push SHIB towards $0.013150, aligning with the 26 Exponential Moving Average (EMA) and suggesting an emerging uptrend.

Trader sentiment also plays a crucial role in the bullish outlook for SHIB. The Long/Short Ratio stands at 2.7940, indicating that long positions significantly outnumber short ones. This data suggests rising confidence among traders regarding SHIB's price movement. Additionally, the Bid/Ask volume imbalance stands at 144.048M vs. -109.632M, revealing a preference for buying. Open Interest has also increased from $38.515M to $38.578M, highlighting growing interest at current price levels. These signals point towards a move beyond $0.013014, potentially testing higher levels if demand remains steady.