Key Insights
- Shiba Inu price forms a double bottom pattern with strong $0.000010 support and resistance at $0.0000159, indicating possible bullish breakout.
- SHIB burn rate climbs over 48,000%, with more than 87 million tokens removed, aligning with historical patterns of price increases after burns.
- Whale transactions rise from 1.28 trillion to 3.69 trillion SHIB in two days, suggesting large investors are increasing exposure to the token.
Shiba Inu traded at $0.0000135 on August 13 after gaining 4.42% in the past 24 hours. The token’s performance has been supported by a sharp rise in burn rate and a significant increase in large-holder transactions. These developments point to a possible continuation of recent gains.
From May 11 to the present, Shiba Inu’s price action has formed a double bottom pattern. The setup has established strong support at $0.000010, a level that has held for months. The price has rebounded from this support twice, each time climbing to $0.0000159 before facing rejection. This resistance now forms the neckline for the pattern.
Potential Upside Based on Pattern Measurement
In technical analysis, the potential move after a double bottom breakout is often equal to the distance between support and resistance. If SHIB surpasses $0.0000159, the projected gain could be around 59%, targeting $0.0000254. Historical data shows that the last convergence of the 50-day and 150-day simple moving averages preceded a rapid rise from $0.0000168 to $0.000033 within two months.
Source: TradingView
Current market indicators support the bullish case. The relative strength index remains favorable for buyers, while the convergence of key moving averages signals possible upward momentum. This combination has previously marked periods of sustained price growth.
Burn Rate Surge Removes Millions of Tokens
Data from Shibburn reveals that SHIB’s burn rate has jumped more than 48,000%, with over 87 million tokens sent to burn addresses. Although this represents a small fraction of the total supply of 589 trillion, past spikes in burn activity have often coincided with price increases.
According to IntoTheBlock data, whale transactions have risen sharply, increasing from 1.28 trillion to 3.69 trillion SHIB over two days. This 188% surge suggests that large investors are adding to their holdings, further supporting bullish sentiment.
The combination of a supportive chart pattern, favorable technical indicators, and rising activity from both retail and large investor positions Shiba Inu for a possible move toward $0.0000254 in the short term.
