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- The Shiba Inu breakout and rising burn rate indicated a potential bullish rally ahead.
- Rising transactions and active addresses supported SHIB’s bullish momentum.
Shiba Inu [SHIB] has made significant progress in breaking out of the long-term descending triangle and positioning itself closer to the critical resistance level at $0.00003306.
This development has led to renewed interest from investors, with SHIB trading at $0.00002812, up 0.92% at the time of writing.
Furthermore, the burn rate has skyrocketed by a whopping 1,068%, removing trillions of tokens from circulation. Shibburn.
These factors have fueled optimism about SHIB’s potential for a strong bullish rally in the near future.
A promising breakout
Shiba Inu’s breakout from the descending triangle heralded a major shift in the market trajectory.
The token was approaching the critical resistance level of $0.00003306 at the time of writing, which if surpassed could pave the way for further gains.
Additionally, the STOCH RSI indicated oversold conditions, pointing to the potential for a recovery.
The MA cross (9, 21) indicated continued upside momentum, reinforcing the bullish outlook. Breaking this key resistance level remains crucial to validate a sustained uptrend.
Source: TradingView
The increasing involvement of Shiba Inu
SHIB’s activity underscored its growing utility within its ecosystem. Active addresses increased by 1.06% in the last 24 hours, while total transactions increased by 1.05% to 11,87,000.
These upticks therefore indicate greater engagement, likely driven by improved market sentiment following the rise in burnouts. The increased transactions reflected growing interest in the token’s potential rally.
Source: CryptoQuant
Foreign exchange reserve indicates balanced sentiment
The foreign exchange reserve for SHIB at the time of writing was 135.89 trillion, which represents a slight increase of 0.09%. However, this modest rebound indicated that selling pressure remained limited, at least for the time being.
This balance between buying and selling activity could allow SHIB to consolidate its recent gains and maintain positive momentum post-breakout.
Source: CryptoQuant
The Long/Short ratio shows cautious optimism
SHIB’s Long/Short ratio showed 46.08% long positions versus 53.92% shorts, underscoring cautious market sentiment.
However, despite the bearish trend, SHIB has shown resilience, with buyers gradually gaining control as critical resistance approached.
This dynamic indicated a possible shift in favor of bulls if buying pressure continues to increase.
Source: Coinglass
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The Shiba Inu outbreak, combined with rising burn rates and increased engagement, points to a promising outlook.
Therefore, if SHIB can overcome the resistance at $0.00003306, a strong bullish rally is very likely. The token’s momentum suggests it is well positioned for further gains in the near term.
