Shiba Inu price bottomed at a crucial support level, with the soaring burn rate and whale buying, and falling exchange reserves pointing to an eventual rebound.
Summary
- Shiba Inu price could rebound as the burn rate soars.
- Whale have continued to accumulate SHIB coins.
- The balances of Shiba Inu coins in exchanges has plunged.
Shiba Inu (SHIB) token was trading at $0.00001180 on Friday, Sep. 26, its lowest level since Aug. 2.
Soaring burn rate and whale buying, falling exchange reserves
SHIB could be about to rebound as key fundamental catalysts align. Data compiled by Shiburn shows that the burn rate jumped by 7,200% on Friday to 7.06 million coins.
The burn rate jumped as one user sent 6 million SHIB to a burn address in three transactions. This burn brings the cumulative incinerated tokens to over 410 billion and the current circulating supply to 584 billion.
Another bullish metric is that whales have continued to accumulate SHIB, a sign that they expect it to rebound. Whales now hold 89 billion SHIB, up from this month’s low of 28 billion.
The closely-watched smart money investors who have a reputation of executing profitable trades have also boosted their positions. They have added their holdings by 105% in the last 30 days to 12.46 billion coins.
The ongoing accumulation likely explains why the amount of Shiba Inu Coins in exchanges has dropped to 283 trillion, down from 297 trillion in July.
These metrics are signs that investors expect the coin to rebound after falling by double digits this year.
Shiba Inu price technical analysis
The daily chart shows that the SHIB price has moved sideways in the past few weeks. It has formed a symmetrical triangle pattern whose two lines are about to converge. The coin moved below the lower side of this pattern during the ongoing crypto market crash. While this is a bearish move, it may also be a false breakout.
Shiba Inu’s Relative Strength Index and Chande Momentum Oscillator have moved to their lowest levels since June. The last time this happened, the coin rebounded by double digits.
Therefore, there is a likelihood that SHIB will rebound in the coming days. If this happens, the coin will likely rally and hit the important resistance at $0.0001477, the highest point on Sept. 14.
