SHIB Bulls Defend Key Support Amid Volatility and Institutional Moves

Shiba Inu (SHIB) has burned 17 million tokens in the past 24 hours, signaling a potential stabilization in its price as key support levels hold firm. The token's price currently trades at $0.000007929, with analysts noting defensive buying near the lower boundary of a descending channel on weekly charts. This activity follows a week of 11.8% correction, marking SHIB's fourth consecutive red weekly candle, but bulls have managed to defend a critical support zone between $0.00000741 and $0.00000767.

Technical indicators paint a mixed picture. While the 14-day RSI stands at 58.939, suggesting a "Buy" signal, moving averages show divergent trends. On Investing.com, SHIB/USD's daily buy/sell signal is "Strong Sell", with 7 Buy and 5 Sell signals across MA5 to MA200 metrics. Conversely, HTX analysis points to a "Strong Sell" outlook with 1 Buy and 11 Sell signals, underscoring volatility. The token's recent rebound has been bolstered by a surge in open interest following the liquidation of billions in short positions, a development analysts say could lay the groundwork for a short-term rally.

Market participants are closely watching Coinbase's upcoming product launches, which could amplify SHIB's liquidity. The exchange will introduce 24/7 altcoin futures for SHIB starting December 5, with perpetual-style contracts following on December 12. These moves, coupled with Japan's decision to classify SHIB under a flat 20% tax regime alongside Bitcoin and Ethereum, signal growing institutional acceptance. Gemini's addition of SHIB perpetual contracts for European traders further underscores the token's expanding regulatory footprint.

Price predictions vary but share a cautiously optimistic tone. Coinpaper projects SHIB could test $0.00000840 in the near term, with higher targets at $0.00001030 and beyond if it reclaims the descending channel's upper trendline. TheCryptoBasic highlights a potential 11.2% rally to $0.0000089, contingent on sustained strength above $0.00000741 and broader market stability. However, failure to hold current support levels could trigger a breakdown to $0.0000071, initiating a new consolidation phase.

The token's on-chain activity also offers hope. Daily burn rates surged 859% year-to-date, reducing circulating supply and potentially enhancing scarcity. This aligns with ecosystem developments like ShibaSwap and Shibarium, which aim to expand SHIB's utility beyond its meme coin origins.

Despite these positives, risks remain. The cryptocurrency market's inherent volatility, coupled with macroeconomic uncertainties, could dampen SHIB's momentum. Analysts warn that Bitcoin's performance will be a critical factor, as broader bearish trends could invalidate short-term recovery attempts.