Shiba Inu Coin price jumped for two consecutive days, hitting a high of $0.00000895 on Sunday, its highest level since December 4. It has risen by nearly 30% from its lowest level this year. So, is this the start of a new bull run, or is it a dead-cat bounce?
Why Shiba Inu Coin Price is Soaring
The SHIB token is rising because of the ongoing performance of meme coins. Data show that these tokens, which plunged sharply last year, are among the best-performing. For example, Pepe Coin price has jumped by over 80% from its lowest point in December.
The other top-performing tokens in the last 24 hours were Pippin, Bonk, Pudgy Penguins, and SPX6900. Indeed, the market capitalization of all meme coins tracked by CoinGecko has jumped from $39 billion in December to over $52 billion today.
Data compiled by Shiburn shows the burn rate jumped 204% over the last 24 hours to over 6.68 million. A soaring burn rate is a bullish sign, as it signals that deflation is continuing. However, history shows that an increasing burn rate is not always correlated with price performance.
Shiba Inu Coin price also jumped as the supply on exchanges has continued to fall over the past few months. Data show the supply has slumped, a sign that bulls are moving their tokens off exchanges.
The token has soared as the Bitcoin price has bounced from the November low of $80,000 to over $91,000. This rebound has risen as the Crypto Fear and Greed Index has moved to the neutral point at 40.
SHIB Price Technical Analysis
The three-day chart shows that the SHIB price also rebounded after dropping to a low of $0.00000684. This rebound happened after it formed a falling wedge, a popular bullish reversal sign. The pattern occurs when two descending, converging trendlines form.
The coin also rebounded as the MACD and the Relative Strength Index (RSI) formed a bullish divergence pattern. Therefore, the token will likely continue rising as bulls target the psychological level of $0.000010.
On the other hand, a drop below the support at $0.00000684 will invalidate the bullish outlook and point to more downside.
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