The burning of tokens on Shiba Inu reduces the volume of assets in circulation, so their scarcity increases over time. The formation of a sideways channel indicates that SHIB is in an accumulation period that could precede a new upward trend.
The Shiba Inu token is regaining ground in the market after hitting a monthly high of USD 0.0000095. However, users executed orders that led it to trade at around USD 0.00000846. The momentum of the crypto fever could help the cryptocurrency overcome the resistance closest to it, thus losing another zero.
The price of SHIB, the Shiba Inu native token, has increased by 2.2% in the last week. Its market capitalization is about USD 4,131,149,289, according to CoinGecko.
Shiba Inu Could Reach a New All-Time High in the Long Term
The developers have implemented the burning of tokens on Shiba Inu, a reasonable factor to consider when analyzing a cryptocurrency. Since that procedure reduces the volume of assets in circulation, their scarcity increases over time.
On the other hand, the community of users who trade Shiba Inu continues to grow. The SHIB and DOGE communities together increased by more than 54%, according to data from Crypto.com.
That is positive for Shiba Inu since the community gives it strong support and will not waver at the first fall. On top of that, some facts show just how popular that project has become. For example, the cryptocurrency recently joined eToro, Coinbase, and other platforms.
Previewing the 4-Hour Candlesticks
Although the token should now have an upward trend, it is a question of holding and waiting to see the market movements. In the meantime, it is necessary to preview the short-term graphs to assess their possible performance in the coming days.
The Shiba Inu chart shows that the token was in an accumulation period before the upward trend started. Currently, the formation of a sideways channel also indicates that the same thing is happening as then.
However, the 50-period EMA and the 20-period midline of the ENV channels are about to cross to the upside. That reveals that an upward trend will start soon, which the RSI can confirm on neutral grounds. Besides, there is a slight rally indicating that traders are buying SHIB.
Additionally, the candlesticks crossing above the moving average levels of the ENV channels and the low volume confirm the bullish continuation pattern. If that happens, it will be possible to see the cryptocurrency approach USD 0.000009 in the next few hours.
The closest resistance in the price of SHIB is at USD 0.00001. For that reason, users should be aware of the closing of the 4-hour candlesticks and the crossing of the EMAs.
The momentum that Bitcoin has had in recent weeks has contributed to the growth of the cryptocurrency market in general. Even tokens like SHIB have benefited from it, as it is about to lose another zero and hit a new all-time high.
By Willmen Blanco
