Shiba Inu price rose for the second consecutive day, reaching a high of $0.00001283, its highest level since Aug. 25.
Summary
- Shiba inu coin price could be on the cusp of a strong bullish breakout.
- The token burn rate jumped by 1,680% on Monday.
- Technical analysis points to a strong rebound in the near term.
Shiba Inu (SHIB) has jumped by almost 10% from it lowest point this month and 30% above the year-to-date low of $0.000010.
SHIB burn rate and smart money buying is continuing
Shiba Inu, the second-biggest meme coin in Ethereum (ETH) ecosystem, rose slightly on Monday. This rebound happened as the burn rate bounced back, rising by 1,680% to 1.24 million.
The burn rate now means that over 410 trillion SHIB tokens have been incinerated, leaving the circulation supply at 584.6 trillion.
In theory, the rising burn rate should be positive for Shiba Inu as it makes the token more deflationary. However, while the 1,680% daily increase is a big number, the amount of tokens burned on Monday was worth just $15 million, a tiny amount for a cryptocurrency worth $7.2 billion.
Shiba Inu price also rose as smart money investors continued accumulating. These investors now hold 9.89 billion tokens, up 62% in the last 30 days, a sign they expect SHIB to keep rising.
Meanwhile, exchange reserves continued to fall this month, reaching their lowest level since June. There are now 278 trillion SHIB coins on exchanges, down from last month’s high of 285 trillion.
Falling exchange reserves is bullish as it signals that investors are not selling their coins.
Shiba Inu price technical analysis
The daily time frame chart shows that SHIB has risen slightly in the past few days. It has moved slightly above the 50-day exponential moving average.
Shiba Inu’s price has moved above the symmetrical triangle pattern, potentially confirming a bullish breakout. The Relative Strength Index has jumped above the neutral point at 50. The price also formed a double-bottom pattern at $0.00001020.
Also, the two lines of the MACD have formed a bullish crossover and are pointing upward. Therefore, the token will likely continue rising as bulls target the key resistance point at $0.00001585, the highest point on July 21, which is 23% above the current level.
