Shiba Inu's Burn Surge and Bullish Divergence Spark Price Scarcity Play

Shiba Inu (SHIB), a canine-themed meme coin, has drawn significant attention as analysts highlight potential bullish momentum following recent technical and on-chain developments. The coin is currently consolidating within a symmetrical triangle pattern on daily charts, a formation often associated with a high-probability breakout in either direction. According to data from CoinMarketCap, SHIB was trading at around $0.00001240 as of the latest update, with a 24-hour increase observed despite a 42% year-to-date decline against broader cryptocurrency benchmarks.

Crypto analysts have identified key resistance and support levels that could determine the coin’s next move. Jonathan Carter, a noted technical analyst, indicated that a breakout above the descending channel could set the stage for SHIB to surpass the $0.00002 psychological level, a target linked to potential 100% gains. This would also open the door for further upside toward $0.00001400, $0.00001750, and even $0.000033, which analysts describe as a major resistance level. Meanwhile, if the price fails to break above $0.000012251, it could retrace to as low as $0.000011269, according to CobraVanguard’s analysis on TradingView.

The triangle pattern appears to be nearing a critical juncture, with SHIB’s price edging closer to its upper resistance zone. Analysts like Javon Marks have pointed to a bullish divergence in the MACD histogram and regular bull patterns forming on the price chart, suggesting a potential reversal is on the horizon. If SHIB successfully breaches its current consolidation range, the coin could see a rally of over 163% toward the $0.00003 range, according to Marks’ projections. This aligns with broader market sentiment that SHIB is accumulating strength, particularly as it forms higher lows on the chart.

One of the most notable on-chain developments has been SHIB’s burn rate, which surged by over 201,000% in a 24-hour period, as reported by Shibburn. This massive increase in token destruction has led to a reduction in SHIB’s circulating supply, currently standing at approximately 589.24 trillion tokens after nearly 410.75 trillion have been burned since the project’s inception. Such burn events are often interpreted as a positive signal for long-term price appreciation, as they create a narrative of scarcity and increasing utility.

The surge in burn activity coincides with SHIB’s technical consolidation and adds weight to bullish predictions. Analyst CryptoELITES has highlighted that a parabolic rally could see SHIB reach as high as $0.0002, a price level not seen since the 2021 meme coin frenzy. On the 4-hour chart, Bollinger Bands are tightening, indicating a potential breakout in either direction, while the RSI remains in neutral territory, leaving room for both bullish and bearish scenarios. Key support levels remain at $0.0000120 and $0.0000115, with traders closely monitoring whether SHIB can stabilize above these levels.

In the broader market context, SHIB has outperformed many of its meme coin peers, with on-chain data from CryptoQuant showing that whale accumulation is a key driver of recent price momentum. Unlike PEPE, which relies more on retail trading activity, SHIB has seen increased buying pressure from larger market participants, particularly in spot and derivative markets. This dynamic has given SHIB a relative edge in a relatively inactive memecoin market, as it has limited losses to just 0.3% over the past week compared to PEPE’s 3.7% drop.

The Shiba Inu ecosystem team has also expressed optimism for the upcoming autumn season, with marketing lead Lucie emphasizing the potential for a bullish period beginning in late September. While the team remains focused on utility-driven growth and global adoption of the Shiba Inu ecosystem, including its Shibarium project, investors are watching for any price-driven catalysts that might emerge. With SHIB trading near $0.00001235 and hovering above key support levels, the stage appears set for a potential breakout that could redefine its price trajectory.

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