Shiba Inu shows signs of recovery after a 140% spike in its burn rate and rising open interest, targeting a move to $0.0000139.
With the market cap of meme coins rising to $60.71 billion, Shiba Inu is capitalizing on the sudden tailwinds. It is teasing an extended rally amid increasing burn rate and growing optimism in the derivatives market.
Shiba Inu Price Analysis
On the daily chart, Shiba Inu reflects a bullish failure to sustain the inverted head-and-shoulders breakout rally. Despite breaking out above the neckline at the 23.60% Fibonacci level of $0.00001390, Shiba Inu failed to hold above the 200-day EMA line and the critical $0.000017 resistance level.
After a decline over the past three weeks, Shiba Inu is down nearly 18%. Currently, it trades at $0.00001319, showing a minor recovery over the past three days.
Notably, Shiba Inu finds local support near the $0.00001252 level, corresponding to the bottom support of the previous right-shoulder formation. As Shiba Inu bounces off this critical support, the RSI signals a hidden bullish divergence. This increases the possibility of a rebound targeting the 23.60% Fibonacci level at $0.00001390.
Despite this short-term optimism, the longer-term downtrend persists in the 50-, 100-, and 200-day EMA lines. The immediate dynamic resistance is the 50-day EMA at $0.00001391, which aligns with the previously broken neckline.
However, a failure to break above this resistance could lead to a retest of the $0.00001252 support or a steeper correction toward $0.00001066.
SHIB Burning Count Grows
Over the past 24 hours, the SHIB burn rate has increased nearly 140%, with 39.49 million Shiba Inu tokens burned. Burning activity has become more regularized, with 1.57 million SHIB tokens burned on Monday alone. To date, approximately 410 trillion SHIB tokens have been burned from the initial supply.
Derivatives Market Turns Hopeful on Shiba Inu
With the short-term recovery underway, optimism in the derivatives market has significantly increased for Shiba Inu.
Specifically, CoinGlass data shows open interest rising by 2.69% to $162.97 million. Meanwhile, the funding rate surged to 0.0088%, reflecting heightened trading activity with a bullish bias.
Furthermore, over the past 24 hours, short liquidations ($71.15K) have outpaced long liquidations ($15.59K), signaling a larger wipeout of bearish traders. Consequently, the derivatives data reflect bullish optimism in the market, anticipating a bullish reversal for Shiba Inu.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
