- Shiba Inu (SHIB) is gearing up for a 20% price surge, according to a prominent analyst.
- The meme token broke above the resistance at the 20-day EMA at $0.00001330.
- In the past day, the SHIB burn rate has dropped 94.68% with only 1.7 million tokens burned.
Shiba Inu (SHIB) is in focus as analysts predict a strong upward movement for the popular meme coin.
Based on both on-chain data and technical indicators, a 20% rally is on the horizon—if SHIB can clear a critical resistance level.
What Technical Pattern Suggests a Potential SHIB Rally?
Pseudonymous cryptocurrency analyst Satori BTC has identified a bullish pattern forming in Shiba Inu’s price action.
According to Satori’s analysis, the altcoin has been developing an inverse head and shoulders (H&S) pattern. This is a well-known technical analysis pattern that typically signals a market bottom and can indicate the end of a recent downtrend.
Examining the four-hour SHIB/USDT chart, SHIB has repeatedly tested the resistance level at $0.0000134. A decisive breakout above this level is anticipated to be the catalyst for the widely expected 20% rally.
This could potentially take the price towards the $0.0000160–$0.0000170 range. The green projection illustrated on the analyst’s chart indicates a bullish trajectory for SHIB following a successful breach of this resistance.
Related: SHIB ETF Push: Why 212 Trading Pairs & 110+ Exchange Presence Matter
What Does the Current Price Action and Indicators Show for SHIB?
SHIB is currently trading at $0.00001480, marking a notable 10% gain over the past 24 hours. The recent breakout above the 20-day Exponential Moving Average (EMA), which sits at $0.00001330, confirms the presence of bullish momentum. This move effectively turns the previous resistance level into a new area of support for the meme coin.
Meanwhile, the Relative Strength Index (RSI) for SHIB is currently at 61.82, inching closer to the overbought territory (typically above 70).
This reading further supports the idea of bullish momentum, although it also suggests that a temporary pullback in price before a more significant breakout cannot be entirely ruled out.
The price action for Shiba Inu has also broken out above the upper Bollinger Band, which is around $0.00001485. This breakout typically indicates increased market volatility and can be set as a new support level.
Could the SHIB Burn Rate Affect the Predicted Rally?
Despite the prevailing bullish sentiment surrounding Shiba Inu, data from Shibburn indicates that the SHIB burn rate has experienced a significant drop of 94.68% in the last 24 hours, with only 1.7 million SHIB tokens being burned.
A declining burn rate could potentially slow down the pace of price appreciation in the long term, as fewer tokens are being removed from circulation.
Related: Over 535 Million SHIB Burned: Price Surges as Scarcity Rises
However, if a large SHIB burn occurs in the near future, it could act as an additional catalyst for the anticipated price surge and a possible retest of $0.0000150, the immediate resistance for the meme token.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
