Shiba Inu (SHIB) Shows 6.6% Gain, Bullish Reversal Possible

Shiba Inu (SHIB) is showing signs of a potential comeback after experiencing a decline in the past month, with a drop of 18.3%. Market analyst Tektonic has pointed out that SHIB is exhibiting early indications of a bullish reversal, with a potential recovery towards $0.000017. This optimism is supported by the recent shift in funding rates, which have turned negative. Negative funding rates typically signal that traders are more inclined to go long on the asset, indicating a bullish sentiment.

The shift in funding rates is a critical factor for the SHIB community, as it suggests a potential reversal in the cryptocurrency's price trend. Funding rates in the cryptocurrency market reflect the cost of holding leveraged positions. When funding rates are negative, it means that traders are willing to pay a premium to maintain their long positions, which is often a sign of bullish market sentiment. This shift has caught the attention of the SHIB community, who are now eyeing a 195% price explosion.

The community's optimism is not unfounded. Historically, negative funding rates have preceded significant price increases in various cryptocurrencies. This pattern has been observed in the past, where a sustained period of negative funding rates has led to substantial price rallies. The SHIB community is hopeful that this pattern will repeat, driving the price of SHIB towards the $0.000017 mark.

The SHIB community's bullish outlook is also supported by the broader market sentiment towards cryptocurrencies. The recent surge in interest and investment in digital assets has created a favorable environment for cryptocurrencies like SHIB. The community's enthusiasm and the potential for a bullish reversal have sparked discussions and speculation about the future price movements of SHIB.

At the time of writing, SHIB was trading at $0.00001161, representing a 6.6% increase in the past 24 hours. Tektonic added that a reversal pattern is forming on key timeframes, aligning with prior price behavior before upside swings. This further supports the community's optimism about a potential price surge.

Additionally, SHIB’s bullish narrative is being supported by a skyrocketing burn rate, according to Shibburn data. Burning tokens means permanently removing them from circulation by sending them to an unusable wallet or a “dead address.” This results in a diminished overall SHIB supply, and depending on supply-demand economics, the price might increase if demand increases or stays the same.

As Shiba Inu edges closer to the psychological price of $0.000012, the second-largest meme coin is creating higher lows, which could cement its bullish outlook. Crypto analyst Bit Guru acknowledged that with bulls defending higher lows and maintaining volume, a breakout could send SHIB toward the $0.00001280–$0.00001350 zone. If momentum picks up, meme coin hype could fuel the next leg.

Higher lows typically show buyers are stepping in at higher prices than before, signaling that bears are losing ground as bulls continue gaining control. Therefore, every higher low acts as a new support zone, meaning that if SHIB maintains this momentum, the 19th-largest cryptocurrency based on market capitalization will likely witness a sustained uptrend.

However, it is essential to note that the cryptocurrency market is highly volatile, and price predictions should be taken with caution. While the SHIB community's optimism is based on historical patterns and current market conditions, there is no guarantee that the price of SHIB will reach the $0.000017 mark. Investors should conduct their own research and consider all potential risks before making any investment decisions.