Shiba Inu price may be on the verge of a strong bullish breakout after forming a rare double-bottom chart pattern. The SHIB token was trading at $0.00001430, up by 40% from its lowest level this year. This article provides a SHIB price forecast as the daily burn rate jumped by over 926% and its Shibarium network gains momentum.
Shiba Inu price rises as risk-on sentiment returned
The SHIB token has done well in the past few weeks. This recovery occurred as investors shifted back to riskier assets this week. Popular stock market indices like the Nasdaq 100, S&P 500, DAX Index, and CAC 40 have jumped in the past few weeks.
These assets soared as investors reacted to Donald Trump’s statement that he was not considering firing Jerome Powell, the Chair of the Federal Reserve. Such a move would have been unprecedented and would have led to heightened volatility in the crypto and stock market.
They also soared as investors cheered to his openness to having a trade deal with other countries, especially with China. The Wall Street Journal reported that he was considering dropping tariffs on Chinese goods from the current 145% to 50% as his opening salvo.
These actions led to a surge in risky assets and an outflow from safe-haven assets. Indeed, US bond yields have pointed downwards, while the US dollar index has jumped to $100 after falling to $98 earlier this month.
At the same time, the Crypto Fear and Greed Index has moved from the extreme fear zone earlier this month to the neutral point at 55.
SHIB burn rate gains steam
Meanwhile, Shiba Inu’s burn rate has jumped sharply in the past few days. Its daily rate jumped by 926% to 15.19 million SHIB coins on Saturday, bringing the total number of tokens burned to over 410 trillion coins.
A token burn is a common practice that cryptocurrencies do to boost their valuation. It achieves this by reducing the number of tokens in circulation and creating a sense of scarcity. It differs from token unlocks, which add more tokens into circulation.
The Shiba Inu price has also surged as the total value locked (TVL) in the Shibarium network increased to nearly $3 million. All players like ShibaSwap, WoofSwap, K9 Finance DAO, ChewySwap, and DogSwap have all added assets in the past seven days.
Shibarium’s success is a good thing for Shiba Inu price because its transactions leads to more transactions and fees. Some of the BONE fees generated in the network are converted into SHIB and burned.
More data shows that the network has handled over 1,09 billion transactions, while the number of addresses is nearing 200 million.
The other bullish catalyst for the SHIB price is that the funding rate has remained in the positive zone in the past few days.
Shiba Inu price technical analysis
The three-day chart shows that the SHIB price bottomed at $0.00001065 earlier this month. This is a notable level since it was the lowest swing in August last year.
It is also a sign that the coin has formed a double-bottom pattern whose neckline is at $0.000033. The coin also formed a small double-bottom with a neckline at $0.0000156. These patterns are highly bullish.
Oscillators like the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards. Therefore, the token is likely to experience a strong bullish breakout, with the initial target to watch being the psychological point at $0.000020, representing a 40% increase from the current level. A drop below the support at $0.000010 will invalidate the bullish outlook.
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