Today, against the backdrop of a general recovery in the cryptocurrency market, the price of Shiba Inu Coin has risen by nearly 3%. At the same time, the meme coin sector has also shown strong performance, indicating that investors are once again turning their attention to this sector.
Despite recent price surges in the market, the ongoing market volatility seems to have affected investor sentiment. However, investors are still exploring the potential reasons for the rise in the price of Shiba Inu Coin today, and whether it can continue to maintain this momentum.
Why has the price of Shiba Inu Coin risen?
A series of factors may have contributed to the rise in the price of Shiba Inu Coin today. Let’s explore some of the main reasons that may have fueled the recent market sentiment.
Meme coin craze
As the broader meme coin sector has shown strong performance, the price of SHIB may surge today. The market value of the entire meme coin sector has increased by 4.15%, reaching $49.25 billion. In addition to Shiba Inu’s 3% increase, other major players in this sector, such as Dogecoin, Pepe Coin, WIF, etc., have also seen increases.
Given the growth potential of this sector, market participants seem to be closely watching. In addition, the low prices of meme coins have apparently attracted the attention of investors, especially in the case of overall market volatility.
Recent burning activities of Shiba Inu Coin
Shiba Inu Coin has recently attracted significant attention due to its large-scale burning activities. Recently, the burn rate of Shiba Inu has increased by over 6000%, demonstrating the community’s high regard for the burning mechanism.
This burning mechanism helps reduce the total market supply, which could drive price increases. In light of this, the recent burning activities may boost market sentiment and indicate a potential price rebound in the coming days.
However, as of the time of writing, the burn rate of SHIB has only increased by 12% in the past 24 hours, burning 11.07 million tokens. Overall, since the initial supply, 410.72 trillion SHIB tokens have been burned, with the current circulating supply at 583.31 trillion.
Latest developments and comments from the SHIB community
Shiba Inu Coin recently attracted investors’ attention with a major announcement. In the latest development, the Shiba Inu team announced the launch of the Web3 version of the popular game “Shiba Eternity.” This initiative will integrate the game with the Shibarium Layer 2 solution, planned to be launched in the third quarter of 2024.
Shytoshi Kusama, Chief Developer of “Shiba Inu,” expressed appreciation for this development. He also revealed that the income from the game will be used to enhance the burning mechanism of SHIB and LEASH tokens.
Will the upward trend continue?
The market is currently experiencing turbulent trading conditions. Recent market trends and macroeconomic factors seem to be affecting investors’ risk preferences. However, despite this, on-chain data and experts indicate that the price of SHIB may rise in the coming days.
As of now, the relative strength index (RSI) of Shiba Inu is at 31, indicating oversold conditions. Nevertheless, market observers expect a rebound in the coming days, as whales may take advantage of “buying on dips” opportunities to increase their holdings. Additionally, since March, the price has dropped significantly, providing buying opportunities for whales.
According to CoinGlass data, the open interest of Shiba Inu has increased by 1.32%, reaching $35.66 million, indicating increased investor interest in cryptocurrencies. As of now, SHIB’s price has risen by 2.87%, trading at $0.00001769.
Given the recent price increase, market participants expect this meme coin to reach the $0.00002 level soon. At the same time, recent analysis by CoinGape points out that Shiba Inu Coin is facing critical resistance levels at $0.00001968 and $0.00002512, which are crucial for its future upward trajectory.
Breaking through these resistance points could bring significant profits. Meanwhile, support levels at $0.00002083 and $0.00001627 play a crucial role in maintaining stability for SHIB during market volatility. Successfully holding these support levels can provide stability and cushioning during market turbulence.
