Shiba Inu price has not been left behind in the ongoing altcoin sell-off. It has retreated by over 22% from this month’s high, but several catalysts could lead to a strong SHIB rebound. It has found strong support at the 50-day moving average, burn rate has jumped, and the number of daily active addresses is stable.
Shiba Inu Price May Rebound As Burn Rate Rises
SHIB price is set to benefit as the number of tokens being incinerated rise. Data by ShibBurn shows that the burn rate jumped by 4,766% on December 18. Over 5.2 million tokens were removed from circulation, bringing the total coins burned to over 410 trillion. The network now has over 584 trillion tokens in circulation.
Shiba Inu token burns will benefit the coin by reducing the total supply and making it deflationary. Some of these token burns are voluntary, while the rest come from its ecosystem like Shibarium and ShibaSwap. BONE tokens generated from fees are converted into SHIB and burned.
SHIB Active Addresses Are Stable
Meanwhile, the number of Shiba Inu active addresses has remained stable even after the coin crashed by 22% from the year-to-date high. Historically, crypto investors tend to exit when a cryptocurrency moved into a local bear market.
According to IntoTheBlock, new Shiba Inu addresses rose by 9.10% in the last seven days. Active addresses have dropped by just 5.96% in the same period, a relatively small number. The number of Shiba Inu addresses with balance has continued rising and now stands at 1.37 million, as shown below. This figure is higher than the 30-day average of 1.35 million.
These numbers mean that there has been no panic selling by investors as the Shiba Inu price nose-dived.
SHIB Price Technical Analysis: SHIB Finds Support
The daily chart shows that the Shiba Inu price has found a strong support at the 50-day moving average. It has failed to move below that moving average since September this year. The token has also found support at the Ichimoku cloud indicator, a sign that it is still in an uptrend.
On top of this, Shiba Inu price has formed a cup and handle pattern whose upper side is at $0.00002941. A C&H pattern is characterized by a rounded bottom that comes after an asset hits a crucial resistance.
The ongoing consolidation and pullback is part of the formation of the handle section. Therefore, the coin will likely bounce back in the next few days. If this happens, the initial target will be at $0.00002941, the upper side of the C&H pattern.
We can estimate that the Shiba Inu price will jump to $0.0000477 by measuring the cup’s depth and then taking the same measurement from its upper side.
The bullish view will become invalid if the coin falls below the support at $0.00002275, its lowest swing on November 15.
The post Shiba Inu Price Finds Support At Key Level: Will SHIB Rebound? appeared first on CoinGape.
