Altcoins show signs of recovery as Shiba Inu coin bounces from support
Altcoins, including Shiba Inu coin, have started to recover after a period of significant losses. Shiba Inu coin recently bounced back from support at $0.0000085 and tested resistance at $0.000009 during US business hours on Wednesday.
Bitcoin price has also seen a positive trend, settling above $40,000 after reaching $40,500 earlier in the day. The overall market cap has increased by 2.3% to reach $1.56 trillion, according to CoinMarketCap.
The value of Shiba Inu coin has increased by 2% to $0.0000088, indicating potential further price surges above the desired $0.00001 level.
However, traders should exercise caution as trading volume has dropped by 35% to $100 million, suggesting waning interest among market participants.
Evaluating the bullish outlook for Shiba Inu coin
Shiba Inu coin’s recent retracement from its peak at $0.000012 indicates that the downtrend may be ending and a bullish era could follow. The support at $0.0000085 aligns with the 61.8% Fibonacci level and is reinforced by the falling wedge pattern visible on the four-hour chart.
To confirm the bullish trend reversal, Shiba Inu price must break out above the upper trendline and be accompanied by a surge in trading volume.
Considerations for entering long positions in SHIB
If you’re interested in entering new long positions in SHIB, it may be wise to wait for a successful break above immediate resistance at $0.000009. However, it’s still possible for the price to drop further to $0.000008 before the next rally gains momentum and surpasses $0.000001.
Shibarium introduces a new token burn mechanism
Shibarium, the Layer 2 scaling solution provider protocol for the Shiba Inu ecosystem, has announced a token burn mechanism aimed at reducing the circulating supply of SHIB tokens. The upgrade will be implemented on Shibarium’s testnet, Puppynet, and is expected to transition to automated mode from the previous manual mechanism.
The Shiba Inu development team will also be working on various upgrades to enhance efficiency and reliability before launching on the mainnet in the coming weeks.
Hot Take: Shiba Inu coin shows signs of recovery with potential for further gains
The recent bounce from support and bullish outlook for Shiba Inu coin indicate a potential recovery in the altcoin market. While caution is advised due to declining trading volume, breaking above resistance levels could lead to further price surges. Additionally, the introduction of a new token burn mechanism by Shibarium may contribute to reducing the circulating supply and potentially impact SHIB’s value positively.
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