Why Is Shiba Inu’s SHIB Surging Today? Technicals and Fundamentals Align

The price of popular memecoin Shiba Inu (SHIB) has spiked over 11% today, extending its recent uptrend. Both technical factors and fundamentals appear to be aligning to fuel this latest SHIB rally.

Breaking Out of Falling Wedge

According to crypto analyst Breakout_Crypto, SHIB has now confirmed an upside breakout from a falling wedge pattern on the weekly chart. This classical bullish chart pattern indicates a reversal of the prior downtrend. With SHIB decisively breaking wedge resistance, further gains could be ahead.

Burn Rate Spikes Over 1300%

Fundamentally, a huge spike in the SHIB burn rate is also providing a tailwind. As noted by Shib Spain X, an anonymous whale recently burned 140 million SHIB – the largest single burn in months. This caused the overall burn rate to skyrocket 1351% higher, drastically reducing circulating supply. With demand increasing and supply shrinking, upward pressure on the SHIB price is growing.

FOMO Kicking In

The technical breakout and supply squeeze seem to be kickstarting a new wave of FOMO, or “fear of missing out” as noted by analyst SHIB Bezos. As the SHIB price climbs swiftly, more traders are likely to jump in for fear of missing the ride higher. This type of bullish sentiment feedback loop could allow the rally to feed on itself in the near term.

Patience Paying Off

SHIB Craft also highlights the virtues of patience for SHIB investors. Despite choking on a zero last year, appetite for SHIB remains strong. With upcoming launches like Shibarium supporting use cases, the SHIB Army community continues holding faith. Their patience now appears to be paying off, with SHIB poised to burn more zeros ahead amid its resurgence.

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In summary, the stars are aligning for SHIB both technically and fundamentally. The breakout, supply squeeze, and renewed hype have set the stage for SHIB to potentially eclipse its previous all-time high in the coming months.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.