Shiba Inu (SHIB/USD) has recovered by more than 10% in the past week. The gains come as investors develop a risk-on sentiment around meme tokens. Dogecoin is already riding on positive sentiment. Investors are curious whether its sister Shiba Inu will make similar moves.
Shiba Inu has endured a difficult spell as the price has been largely bearish. As of press time, the meme token was trading at $0.000011, recovering from a drop to $0.0000098. The gains came when the crypto exchange Bitstamp listed the token. We look at a few developments that could impact price next.
Fundamentally, there are mixed developments for SHIB. First, the Shiba Inu burn rate skyrocketed 14,267% as of October 27. However, the tokens burned were just 14.07 million. The burning mechanism has lately been less influential to SHIB’s price.
Elsewhere, whales hodling of SHIB has fallen to below $100 million, according to data by WhaleStats. As of October 28, the top 100 ETH whales were hodling $89,781,650 SHIB. The development comes after WhaleStats indicated that the top 500 Ethereum wallets had added $6 million worth of SHIB.
SHIB contained by resistance at $0.000012
Source – TradingView
On the technical front, SHIB is trying to break above the 50-day MA. The cryptocurrency now remains supported by the 20-day MA. The relative strength index remains above the midpoint, with no overbought conditions.
Shiba Inu must clear the resistance at $0.000012 for the bullish momentum to be sustained. The move will depend on the crypto sentiment and risk assessment by investors around the meme token.
Should you buy Shiba Inu?
SHIB price is known to make parabolic moves in the market. Thus, a positive sentiment around the Twitter acquisition could boost the token. For now, we remain cautious as long as the token remains below $0.000012.