- SHIB approaches the upper trendline of a downtrend channel since late 2024; a breakout could trigger a rally.
- Increased trading volume (59% surge) and recent SHIB token burns (over 900M) are fueling positive price momentum.
- SHIB’s weekly gain of 3% outperforms the global crypto market (2.90%) and the Coinbase 50 Index (0.00%).
Shiba Inu is approaching the upper trendline of the downtrend channel that has been forming since late 2024. As per market experts, a breakout above this channel could set the stage for a rally.
A descending channel is a bearish technical pattern marked by two downward-sloping parallel trendlines. Typically, prices bounce between these trendlines. In this case, a breakout above the resistance (upper trendline) suggests that the downward pressure is losing momentum and buyers are gaining control.
$SHIB is about to reach the upper line of the downtrend channel. A breakout of that channel will start a rally. It looks like a breakout of the channel will be attempted soon.
As the price nears the trendline, traders must keep an eye on any volume changes for confirmation of a potential breakout. An increase in volume would strengthen the case for a reversal on the upside.
At press time, SHIB is trading at $0.00001274, up by 3% in the past 24 hours. Data from CoinGecko showed that the trading volume of the meme coin stands at $130 million, representing a 59% surge from one day ago and signaling a recent rise in market activity.
Shiba Inu’s Market Outperformance and Token Burns
With a weekly increase of 3%, SHIB is outperforming the global cryptocurrency market, which is up 2.90%, and outperforming when compared to similar Coinbase 50 Index cryptocurrencies, which are up 0.00%.
Fueling this price momentum is the Shiba Inu burn initiative, which recently torched 881,353,310 SHIB tokens through the ShibTorch platform. The announcement highlights a steady rise in community participation and marks a notable increase in SHIB token removal from circulation.
As per Shibarium Updates, on April 18 at 4:05 a.m. UTC, a total of 16,682,282.98 SHIB were burned. This was followed by a 14,521,134.84 SHIB burn that occurred on April 14 at 10:22 p.m. UTC. These actions marked a 5.40 percent weekly change in the token’s burn volume, reflecting growing engagement from Shiba Inu users.
