Shiba Inu Token Sees Price Surge and Increased User Activity: What’s Next?
Shiba Inu Token Sees Surge in Price and User Activity, Setting Stage for Potential Breakout
The Shiba Inu token, the second-largest meme cryptocurrency by market cap, has been making waves in the crypto world recently. On October 29, SHIB reached a monthly high of $0.00001979 before experiencing a slight retracement to $0.00001832 the following day. Despite this pullback, the altcoin’s weekly performance remains strong, fueled by a bullish trend sweeping across the cryptocurrency market.
One of the key factors driving Shiba Inu’s recent momentum is the increase in daily active users on its network. Between Monday and Wednesday alone, active addresses surged from 3,398 to 5,175, marking a new high for October. This uptick in user activity reflects a growing interest in Shiba Inu’s blockchain and suggests a sustained demand that could support SHIB’s price stability.
In addition to the rise in user activity, Shiba Inu’s burn program has seen a significant spike, with a 145% increase over the past week resulting in approximately 121.76 million tokens being removed from circulation. By reducing the total supply of SHIB tokens, the burn mechanism aims to boost the cryptocurrency’s valuation, provided demand remains steady or increases.
On the technical front, Shiba Inu’s chart patterns indicate a potential cooling-off period for the token. The RSI, a key indicator of price momentum, has shifted downward to 55.25, suggesting a period of price stability before a potential uptrend resumes. The altcoin’s approach to its 20-day EMA further supports this consolidation potential, with the EMA serving as an immediate support level that could trigger a bounce if the token stabilizes around $0.00001793.
Looking ahead, SHIB is poised to trade within a defined range in the near term. Holding above the 20-day EMA could maintain the current bullish trend, while a break below could lead to a retest of lower support zones. A move below the October 3 low of $0.00001548 would signal a more significant bearish turn and cast doubt on the token’s medium-term outlook.
On the upside, a resurgence in bullish sentiment could propel Shiba Inu back toward recent highs near $0.000020 and potentially higher resistance points around $0.000023 and $0.000026. With volatility on the horizon, the coming days will reveal whether SHIB’s bullish resilience can break through or if a deeper consolidation is on the horizon for the meme cryptocurrency.
