- The Shiba Inu price is currently experiencing a rally, aligning with the broader meme coin market uptrend.
- This bullish trend is also driven by a short squeeze, where traders were forced to buy back SHIB.
- A drop in SHIB burn rate has sparked speculations of a potential downtrend.
The Shiba Inu price has seen a notable rebound, joining the broader meme coin market rally. After a period of volatility amid the escalating US-Iran tensions, SHIB is once again showing positive sentiment. Investors are exhibiting renewed interest in the meme token.
The recent upswing comes amid renewed optimism in the broader crypto market. Developers are closely watching developments and social media trends that often influence meme tokens like SHIB.
However, the latest reports on the SHIB burn rate have sparked speculations of another downturn, despite the current positive trend. Now, all are closely watching to see if the meme coin will move up or down.
Shiba Inu Price Soars 5%
According to CoinMarketCap data, the SHIB token is currently trading at $0.000006099, surging by nearly 5% in a day. Although the token has declined by 5.5% in a month, it has still soared by a massive 12% in a week.
Amid this bullish trend, traders are actively engaged with the Shiba Inu token. This is clearly evident in the staggering hike of 105% in the 24-hour trading volume, which is currently at $166 million. Driven by the current Shiba Inu price rally, traders and investors may be actively accumulating the meme token.
Analysing the Current Meme Coin Market Rally
Significantly, the current jump in the Shiba Inu price is primarily driven by the meme coin market rally. Although meme coins recently faced significant pressure amid the heightened US-Iran tensions, the market has now regained momentum, with top tokens like DOGE, SHIB, and PEPE posting significant gains.
While the Dogecoin price has jumped by 6% in a day, PEPE skyrocketed by nearly 20%, sparking massive speculations of a potential bull run.
As of now, the meme coin market is up by 6.5%, as the total cap has reached $33.35 billion. The 24-hour volume has also seen a significant surge of 87%, hitting $5.16 billion. This uptrend is in line with the broader crypto market rebound after weeks of volatility. The overall industry has grown by about 3.5%, currently hitting $2.52 trillion.
Why Shiba Inu Price Up Today?
Notably, the main driver of today’s Shiba Inu price rally is the broader crypto market uptrend. This is fueled by strong institutional demand. Last week saw about $767 million in inflows to US Bitcoin ETFs. This indeed created a risk-on mood and pushed investors into higher-risk assets like meme coins.
Another factor that pushed the SHIB price higher was a short squeeze. Traders who had bet against SHIB were forced to buy back their positions as prices surged. This further accelerated the price rally.
About the future, analysts say that SHIB could continue rising if it holds its 50-day moving average at $0.0000061. If so, it could potentially test the next resistance at $0.00000738. However, a drop below $0.00000575 could end the rally.
SHIB Token Burn Slowdown Sparks Caution
Despite the current Shiba Inu price rally, there are speculations about a potential downtrend. This is due to a significant reduction in the SHIB burn rate, as reported by CryptoNewsZ.
Shibburn data revealed that over 2.2 million SHIB tokens were removed from circulation in the last 24 hours. Token burns are always a way to reduce supply and support SHIB’s deflationary value. But the latest figure marks a 45% drop compared to similar previous periods.
This slowdown suggests that efforts to reduce SHIB’s supply have weakened, and this could significantly impact the Shiba Inu price.
