Shiba Inu's Rise and Subsequent Decline
The Shiba Inu token, the second-largest meme cryptocurrency by market capitalization, climbed to a monthly high of $0.00001979 on October 29. However, this peak was followed by a slight drop, with $SHIB falling to $0.00001832 within one day, representing a 3.86% decrease. Despite this short-term decline, the token's weekly performance remains strong, buoyed by a robust bullish trend currently influencing the cryptocurrency market.
Growing Interest in the Shiba Inu Network
The recent growth in SHIB's value has coincided with an increase in daily active users on the Shiba Inu network. Between Monday and Wednesday, the number of active addresses rose from 3,398 to 5,175, marking a new high for October. This surge in user activity reflects the increasing popularity of the #shiba⚡ Inu blockchain and could play a crucial role in stabilizing the token’s price.
Token Burns as Part of Price Growth Strategy
SHIB’s value growth is also supported by a token burn process, which saw a 145% increase in the past week. Approximately 121.76 million tokens were removed from circulation, contributing to a reduction in the total supply. This mechanism aims to raise the token’s value, provided demand remains steady or continues to grow.
Technical Indicators Signal a Period of Stability
From a technical perspective, Shiba Inu's charts suggest a possible period of calm. The RSI indicator, which measures price movement strength, increased two days ago but has now settled at 55.25. This suggests that SHIB could enter a phase of price stability before a potential uptrend renewal. This stabilization trend is further supported by the price’s proximity to its 20-day EMA (exponential moving average), currently at $0.00001793, serving as a key support level. At the same time, Bollinger Bands indicate lower volatility with the price approaching the middle band at $0.00001815, signaling a consolidation zone. Although the bullish momentum appears temporarily subdued, the overall trend for SHIB remains upward.
Looking Forward: Consolidation or Breakout?
SHIB is now undergoing a consolidation phase and may trade within a defined range in the near term. Holding above the 20-day EMA could sustain the current bullish trend, while a drop below this level might lead to testing lower support zones around $0.00001665. A drop below the October 3 low of $0.00001548 would indicate a stronger bearish reversal, potentially impacting SHIB’s medium-term outlook.
On the other hand, renewed bullish sentiment could drive Shiba Inu back toward recent highs near $0.000020. Breaking this resistance level could pave the way toward higher resistance levels at $0.000023 and $0.000026. The upcoming days will be crucial in determining whether SHIB's bullish resilience can break through this consolidation phase or if the token is preparing for deeper stabilization.
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