Shiba Inu Anticipated to Skyrocket by 200% Amid Rising Open Interest and Burn Rate
Shiba Inu Price Forecast: Potential 200% Surge
On November 10, Shiba Inu's price is experiencing a notable increase, aligning with the broader cryptocurrency market's recovery from recent lows. A prominent crypto analyst suggests that Shiba Inu may see substantial growth, potentially surging by 200% in the near future, based on its technical indicators.
Technical Analysis and Accumulation Phase
Shiba Inu has been consolidating within a range, reflecting an accumulation phase as per the Wyckoff Theory. Since February, it has traded between a support level at $0.0000097 and resistance at $0.00001636. Javon Marks, a crypto analyst with a significant following, highlighted in a social media post that Shiba Inu is in an accumulation stage and has formed a bullish divergence pattern, which may indicate a forthcoming price rebound. Divergences occur when an asset's price declines while indicators like the Relative Strength Index (RSI) and MACD register higher highs.
Impact of Open Interest and Burn Rate on SHIB Price
The recent uptick in Shiba Inu's price is partly attributed to a broader crypto market rally. Bitcoin's price surpassed $107,000, and XRP saw a 10% increase, contributing to a 4% rise in total market capitalization over the past 24 hours. Moreover, investor sentiment is buoyed by the potential resolution of the U.S. government shutdown, with bipartisan support gaining momentum.
Shiba Inu's price is further supported by the stabilization of futures open interest. Data from CoinGlass indicates that open interest increased to $73 million, up from a weekend low of $60 million, suggesting heightened investor engagement. Increased open interest typically signals that traders are leveraging positions, potentially enhancing Shiba Inu's performance.
Additionally, Shiba Inu's burn rate has surged significantly. According to Shibburn, the burn rate escalated by nearly 66,000% in the last 24 hours, reaching 622 million tokens burned, primarily from a single transaction of 621 million tokens. Despite these positive indicators, Shiba Inu faces challenges, including the underperformance of its Shibarium network and lukewarm investor demand.