Shiba Inu coin appears to be stirring from its slumber. Over the last 24 hours, the SHIB token has seen an astonishing spike in trading volume to the tune of 193% – rocketing from $140 million to over $412 million exchanged. The surge of interest has translated into a nearly 9% pop in the SHIB price as well.
TLDR
- Shiba Inu (SHIB) saw a 192.84% spike in 24-hour trading volume to $412 million along with a 8.68% price jump
- The surge in volume and price gives SHIB positive momentum, with potential to break past resistance at $0.000051
- However, the Chaikin Money Flow declined significantly which raises concerns about sustaining buying pressure
- Social volume around SHIB decreased despite the price rally, which could pose challenges for future growth
- Over 5 million SHIB tokens were burned in the last day which can enhance value through reduced circulating supply
SHIB now trades around $0.00001142, up from lows below $0.00001 seen earlier this year. The memecoin had been locked in a tight trading range for several weeks, but the recent breakout signals Shift is once again on the move. However, plenty of uncertainty remains around whether this bull run will have any staying power.
The explosion in trading activity indicates whales and institutional players are taking a renewed interest in SHIB.
Their buy orders are allowing the price to test critical resistance around $0.000051 which has halted previous rally attempts. An influx of volume is typically required to decisively push through such a heavy barrier, so the stage may be set for lift-off if momentum continues building.
On the flip side, the heavy buying pressure also appears to be slowing down. The Chaikin Money Flow indicator for SHIB flashed a warning sign after declining precipitously from 0.30 down to 0.17 in a day. The CMF measures the momentum of money flowing in and out of an asset – so this reversal may open the door for profit-taking bears to seize control of the market again.
Adding to the uncertainty is a decrease seen in SHIB’s social volume at the same time as its price uptrend. Memecoins often feed off viral hype and community engagement via platforms like Twitter. So declining interest around the ‘dogecoin killer’ provides reason for caution amid the price pop. Then again, the weighted sentiment score saw an increase which indicates the commentary skewed more positively.
While the staying power of sudden memecoin mania has proven ephemeral in the past, Shiba Inu does have some key tailwinds that could fan the flames beyond a typical pump and dump.
Most intriguing is the ongoing burn mechanism removing SHIB tokens from circulation.
Over 5 million tokens were burned in the last 24 hours, building on the 410 trillion burnt so far. By constraining supply amid any demand spikes, this burn feature can compound upside price potential.
In the past 24 hours, there have been a total of 102,760,432 $SHIB tokens burned and 3 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/zV88Afdab0
— Shibburn (@shibburn) February 28, 2024
Cryptocurrency analysts will be monitoring closely to see if Shiba Inu’s awakening turns into a sustained beast mode near-term price breakout.
A convincingly strong move past resistance in the $0.00005 zone would open the door for blue sky towards unprecedented highs.
But failing to hold support at $0.000045 conversely risks a harsh rejection sending SHIB into retreat. For seasoned trading veterans and wide-eyed newcomers alike, the risk-reward dynamics may be irresistible to bet on further fireworks either way.
