SHIB has successfully exited a prolonged downtrend, propelled by a notable increase in its burn rate and heightened interest from investors regarding new developments within its ecosystem.
On March 26, Shiba Inu (SHIB) experienced a rally of 10%, peaking at $0.00001485, with a market capitalization of $8.6 billion. This surge allowed it to surpass significant competitors like Sui (SUI) and Hedera (HBAR), positioning it as the 19th largest cryptocurrency based on data from CoinGecko.
Three main factors are contributing to SHIB’s current gains.
To start, the Shiba Inu development team has hinted at the launch of Shib Finance, a substantial DeFi upgrade that will bring a variety of financial instruments, such as reputation-based lending and undercollateralized borrowing. The forthcoming platform aims to bridge traditional finance with decentralized finance, featuring components like Karma Engine, Shib Attestation, and a privacy-oriented identity layer.
Secondly, SHIB has been added to BingX Futures, providing access for over 10 million global users to trade the memecoin with leverage.
Lastly, there has been a remarkable rise in its burn rate. As of March 23, Shiba Inu’s daily burn rate surged by nearly 8,100%, exceeding 1 billion SHIB tokens in just one day. According to Shibburn, over 410.74 trillion tokens have been burned since the project began, leaving around 589 trillion tokens in circulation.
Additionally, on-chain metrics indicate a thriving bullish sentiment for SHIB. The number of daily active addresses on the network has risen by over 20% since March 18, according to data from Santiment.
Meanwhile, the social sentiment surrounding the token has turned positive, especially after recent comments from U.S. President Donald Trump reignited interest in meme coins, particularly with a Truth Social post about an official Trump memecoin, TRUMP.
SHIB Price Assessment
On the daily chart, SHIB recently broke out of a falling wedge pattern that has been forming over the last four months—a classic bullish indicator. Such a breakout typically signals a potential reversal in trend, suggesting that SHIB may be setting up for a substantial upward movement.
Short-term projections for SHIB indicate a possible 20% increase following a breakthrough of key resistance and the completion of a classic inverse head-and-shoulders pattern. Notably, a pseudonymous trader known as Satori has pointed out that this breakout confirms a bottoming structure, potentially paving the way for further upward momentum if buying volume sustains.
SHIB price has now risen above its 25 and 50-day moving averages, marking initial indicators of a reversal from February’s decline.
The price reached a low around $0.0000123, forming a solid support level. With SHIB now trading above these short-term moving averages, it seems poised to target the 75-day EMA located around $0.00001575.
The Money Flow Index (MFI) is also on the rise, though it hasn’t yet entered the overbought territory. As this indicator tracks buying and selling pressure, its upward movement suggests that buying activity is currently outweighing selling pressure, which could further propel SHIB higher as long as the upward trend remains solid.
Data from derivatives markets also backs the bullish outlook. Open interest has increased by over 26%, reaching $160 million, reflecting a growing inflow of capital into SHIB futures. Additionally, the OI-weighted funding rate has turned positive.
With these encouraging indicators, SHIB’s next potential target appears to be $0.00002485, which is approximately 65.7% above its current price of $0.000015, also marking its yearly high thus far.
Disclosure: This article is not intended as investment advice. The information and materials presented here are for educational purposes only.