Shiba Inu Breaks Through Important Resistance Level Amid Price Rise

Shiba Inu is approaching a critical moment as technical indicators, on-chain activity, and tokenomics signal the potential for a price change at the time of this report. With over 410 trillion tokens burned and network usage rising through Shibarium, traders are closely following the next move. The price is fluctuating near a key support level, while the MACD indicator shows the potential for a momentum reversal. Therefore, this phase seems to be ready for a breakout or prolonged consolidation. The amount of Shiba Inu tokens burned rises sharply as supply decreases further. The SHIB burn rate has surged, with data from ShibBurn indicating a daily increase of 3.145%. This is equivalent to 18.83 million SHIB tokens being sent to an inaccessible address. Since its launch, over 410 trillion tokens have been permanently removed from circulation. This type of supply reduction, known as burning, helps maintain scarcity within the ecosystem. This process is the opposite of unlocking tokens, which increases the available supply and can exert downward price pressure. Blockchain projects often use deflationary token supply to control inflation. The Shibarium layer-2 network is also involved in this process. Transaction fees on the network are partially converted into Shiba Inu and burned. According to recent reports, Shibarium has now processed over 1.129 billion transactions. The number of active wallets on the network has reached 206 million addresses. These figures indicate an increasing level of usage and interaction, which also supports the SHIB burning mechanism through fee activities. Technical indicators show the resistance level ahead, with initial signs of a momentum shift. The price of SHIB is trading at $0.00001437 with a rise of 10.43% each day. The trading price is on a gradually ascending long-term support trend line, effective since mid-2022. This trend line continues to provide structural support against deeper corrections. The Fibonacci retracement levels mark resistance areas. These levels include 23.6% at $0.00002479, 38.2% at $0.00003697, and 50% at $0.00004682. The 61.8% level, often monitored by technical traders, stands at $0.00005667. Price volatility towards any of these levels may slow down or reverse if the resistance level remains intact.

The MACD is still declining, with the MACD line remaining below the signal line. However, the narrowing histogram bars may indicate a shift towards a bullish crossover if upward momentum continues. A confirmed crossover could signal stronger upward pressure. The RSI stands at 41.11. It indicates that the asset is neither oversold nor overbought. The rising RSI trend suggests slow buying interest but remains below the 50 level. It reflects weak overall momentum. The price action of Shiba Inu and the activity of whales indicate an accumulation phase. The recent price candles show small body formations, often related to market indecision. This price action, combined with the recovery from the historical support level of $0.00000510, indicates the potential for accumulation. Whale activity is also on the rise. IntoTheBlock reported 48 large Shiba Inu transactions in the past 24 hours, close to the 7-day high of 49. The 7-day low was 29 on May 1st. The increase in the size and frequency of transactions may indicate positioning ahead of a market move.

In previous cycles, large trades have occurred near periods of rising volatility. These trades, often by whales or institutions, can signal accumulation or portfolio adjustment. Consistent activity may indicate ongoing strategic interest in SHIB. The liquidation trend reflects the unclear direction of the market. According to data from CoinGlass, the liquidation rate of leverage was uneven throughout the day. A large long position was closed on April 7, with over 900,000 dollars in the process, due to the value of Shiba Inu decreasing. On April 23, there was a strong increase in short liquidation transactions during a short-term price recovery. Since the beginning of April, both short and long liquidation transactions have also become less pronounced and more symmetrical. This is a sign that traders are still applying leverage, but the markets seem to have no clear trend. Long-term liquidations increased at the beginning of May, while short-selling pressure remains lower.

All of this may indicate a weakening optimistic sentiment among traders. The current RSI and Moving Average Convergence Divergence (MACD) indicate limited action from traders. They may be waiting for the right signals to enter the market. The day before, Shiba Inu remained stable at around $0.00001275. Therefore, the combination of lower liquidation volume and the flattening of the price range implies that a breakout is now evident with a price rise of more than 10% in one day.