Shiba Inu is under focus and on the verge of entering a new bullish phase, according to analyst Charting Guy. Per his weekly chart analysis, SHIB may be ready for its first impulsive wave and may revisit its 2021 price levels.
Symmetrical Triangle Formation Suggests Imminent Breakout
Charting Guy points out that Shiba’s price has been oscillating in a symmetrical triangle formation in the past three months. This is a significant level for this asset.
The down-sloping trendline of this formation started forming in May, while the up-sloping trendline was formed after the price dip from its yearly high of $0000045 in March. This pattern indicates that the token is in the consolidation stage. It may precede a large movement in the token’s price.
Source: X
As of now, Shiba Inu is trading for $0.00001457. A clear breakout from a symmetrical triangle pattern could lead to a significant upside move. The first major resistance point is at $0.00001643 marking the highs of mid-August. If this level is violated, then the next major ceiling is at $0.00002, a psychological level of interest to traders.
Additional resistance levels are at $0.00002266 and $0.00003124, with the final target at $0.00008841. Nevertheless, SHIB may experience considerable selling pressure between $0.000024 and $0.000030 levels. It’s where many SHIB tokens were bought, and a large sell wall exists.
Shiba Inu Burn Rate Increases
During these advancements, the Shiba Inu community has stepped up its moves to decrease the supply further through token burning. According to the ShibBurn website, the SHIB burn rate jumped by 5,975.13% in the last 24 hours. 1.729 million tokens were burned.
This sudden increase in the burn rate helps make the token scarce to increase its value in the future. In the past week alone, over 38.88 million SHIB tokens have been burned. It goes to show that the community is more than willing to work towards making the token more valuable.
At the same time, Shibarium, the Layer 2 network of the Shiba Inu, has also been growing. Daily transactions increasing by 70% and wallet addresses crossing the 18 million mark. This increase in interaction is indicative of the increasing confidence that investors have in the SHIB ecosystem. It may well be instrumental in determining the future value of the asset.
Shiba Inu Faces Criticism Amid Price Volatility
Despite the positive technical outlook, the Shiba Inu team continues to face criticism from some community members. They blame the team for the token’s underperformance since its all-time high in 2021.
Shiba Inu reached a peak price of $0.00008845 in October 2021. However, like many other cryptocurrencies, it experienced a substantial correction in the subsequent bear market. Currently, SHIB is trading 83.47% below its all-time high, causing frustration among some investors who hoped for a quicker recovery.
Despite the favorable technical aspect, some members of the SHIB community remain unappreciative of the Shiba Inu team, accusing them of the token’s poor performance since its last peak in 2021.
