Shiba Inu (SHIB) is among the prominent cryptocurrencies in the ongoing market rally. The meme coin entered the top 10 digital assets by market capitalization.
At the time of publication, SHIB was valued at $0.00002778, up nearly 7% in the last 24 hours. On the weekly chart, the token rose 62% amid sustained buying pressure, pushing its market capitalization to $16.80 billion.
What’s next for Shib?
Technical indicators suggest that SHIB is likely to maintain its current momentum in both the short and long term. The token’s valuation is currently above the 50-day and 200-day moving averages.
However, momentum indicators such as the 14-day Relative Strength Index (RSI) are signaling that SHIB could witness a sell-off or price consolidation as numbers suggest it has entered overbought territory.
Analysis provided by a pseudonymous trading expert Chris X’s post on November 11 noted that the meme coin appears to have broken out of its bullish pennant, opening up room for further gains.
This potential breakout is supported by rising volume, indicating strong buying interest.
On the other hand, the analysis carried out Krypto Tony November 11 showed that SHIB bulls are looking to hold $0.00002200. Thus, a successful retest and consolidation around this level could signal a bullish position.
Shib Basics
For now, SHIB is relying heavily on the ongoing cryptocurrency market rally, which is fueled by optimism surrounding Donald Trump’s second tenure in the White House.
The token could also rise given that it previously received support from Tesla (NASDAQ: TSLA) CEO Elon Musk, who is seen as a key beneficiary of Trump’s re-election.
Musk’s influence on the meme coin market is evident in the price movements of Dogecoin (DOGE).
Given that one of Trump’s promises to the crypto community is to make the United States a hub for innovation, the Shiba Inu community is ready to embrace this opportunity.
To this end, the lead developer of Shiba Inu Shitoshi Kusama proposed to create a “Silicon Valley for cryptocurrencies.” If successful, the plan aims to position the US as a global leader in blockchain innovation.
In an attempt to reduce the supply of SHIB, token burning activity continues to increase. The latest data shows that the burn rate has increased by 1837% in the last 24 hours, resulting in over 463 million tokens being withdrawn from circulation.
In conclusion, the Shiba Inu rally, public initiatives and bullish market support set the stage for potential further growth. However, given overbought indicators, investors should be wary of possible corrections.
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