Shiba Inu coin price stable after respecting support at $0.0000085 and climbing to $0.0000088 while layer 2 scaling protocol Shibarium prepares for a transformative SHIB burn mechanism.
Published 2 hours ago
Altcoins woke up after a period characterized by immense losses. Shiba Inu coin, for instance, bounced from support established at $0.0000085 to test $0.000009 resistance during US business hours on Wednesday.
As discussed, Bitcoin price settled above $40,000 after rising to $40,500 in early European hours. The total market cap worth $1.56 trillion had grown by 2.3%, according to market data by CoinMarketCap.
A 2% increase in the value of Shiba Inu coin to $0.0000088, means that investors would be betting on further price surges aiming for areas above the coveted $0.00001.
Despite the bullish outlook, traders should be cautious with the decisions they take, considering a 35% drop in trading volume to $100 million implying dwindling interest among market participants.
Evaluating the bullish outlook in Shiba Inu coin
Shiba Inu retraced from the recent December peak at $0.000012 to the Fibonacci level ratio of 0.618, implying that the downtrend is ending and a bullish era is likely to follow.
The support at $0.0000085 (in the green band) coincides with the 61.8% Fibonacci level as well as support provided by the falling wedge pattern, as shown on the four-hour chart.
For this pattern to be highly beneficial to the bulls, Shiba Inu price must achieve a breakout above the the upper trendline. Such a move would be accompanied by a spike in the trading volume to sustain the trend reversal.
Those interested in entering new long positions in SHIB may want to consider waiting for a successful break above $0.000009 immediate resistance. However, it is too early to rule out further losses to $0.000008 before the next rally gains momentum reaching above $0.000001.
Shibarium announces new SHIB token burn mechanism
A new era awaits SHIB after the ecosystem’s Layer 2 scaling solution provider protocol, Shibarium announced an unprecedented token burn mechanism.
According to the announcement on X, Shibarium is set to receive a transformative upgrade to drive efforts geared toward reducing the circulating supply.
#Shibarium’s Burn Mechanism:
A New Era
Shibarium is introducing a transformative token burning mechanism…More on https://t.co/hIa2ZSAxtP
— 𝐋𝐔𝐂𝐈𝐄 | Shibarium ⛓️ (@LucieSHIB) January 23, 2024
Testing of the burn mechanism will soon begin on Shibarium’s testnet called Puppynet. It is expected to morph into an automated mode, moving away from the previous manual mechanism.
The Shiba Inu development team will in the following weeks work on various upgrades meant to “enhance efficiency and reliability” ahead of the the launch on the mainnnet.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
