SHIB spikes over 60% in a week; What next? 
Cryptocurrency Nov 11, 2024 Share
Shiba Inu (SHIB) is among the standout cryptocurrencies in the ongoing market rally. The meme coin has broken into the top 10 digital assets by market capitalization.
At press time, SHIB was valued at $0.00002778, up almost 7% in the last 24 hours. On the weekly chart, the token has rallied by 62% amid sustained buying pressure, pushing its market cap to $16.80 billion.
SHIB seven-day price chart. Source: Finbold
What next for SHIB?
Technical indicators suggest that SHIB will likely sustain the current momentum in both the short and long term. The token’s valuation currently stands above the 50-day and 200-day moving averages.
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However, momentum indicators such as the 14-day relative strength index (RSI) signal that SHIB might witness a sell-off or price consolidation, as the figures indicate it has entered the overbought zone.
Analysis shared by pseudonymous trading expert Chris in an X post on November 11 noted that the meme coin appears to be breaking out from a bullish pennant pattern, showing room for further upside.
This potential breakout is supported by increased volume, indicating strong buying interest.
SHIB price analysis chart. Source: TradingView
On the other hand, an analysis shared by Crypto Tony on November 11 indicated that SHIB bulls are aiming to hold $0.00002200. Therefore, a successful retest and consolidation around this level could signal bullish positions.
SHIB price analysis chart. Source: TradingView
SHIB fundamentals
At the moment, SHIB is heavily relying on the ongoing cryptocurrency market rally, which is inspired by optimism surrounding Donald Trump’s second stint in the White House.
The token may also rise, given that it has previously received support from Tesla (NASDAQ: TSLA) CEO Elon Musk, who is viewed as a key beneficiary of Trump’s re-election.
Musk’s impact in the meme coin space is evident in the price movement of Dogecoin (DOGE).
Considering one of Trump’s pledges for the crypto community is to make the United States an innovation hub, the Shiba Inu community is positioning itself for this possibility.
To this end, Shiba Inu lead developer Shytoshi Kusama proposed creating a “Silicon Valley for crypto.” If successful, this plan seeks to position the U.S. as a global leader in blockchain innovation.
In a bid to reduce SHIB’s supply, the token continues to see a spike in burn activity. Recent data indicates that the burn rate has surged by 1,837% in the past 24 hours, resulting in over 463 million tokens being removed from circulation.
SHIB 24-hour burn rate. Source: Shibburn
In conclusion, Shiba Inu’s rally, community initiatives, and bullish market support position the token for potential further growth. However, with overbought indicators, investors should be cautious of possible corrections.
Featured image via Shutterstock