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- A top Shiba Inu proponent has maintained a bullish forecast on the token’s price.
- Ecosystem trends, including burn mechanism and ShibaSwap, can drive future adoption.
Dog-themed memecoin Shiba Inu (SHIB) recently defied market expectations, surging over 20% to a six-month high of $0.00002031 on September 28. Pseudonymous Shiba Inu proponent and SquidGrow founder Shibtoshi is optimistic something big is coming for SHIB.
Burn Mechanism and Shibarium Fuel Bullish Sentiment
In a recent Shib Daily interview, Shibtoshi attributes SHIB’s ascent to several key factors within the broader crypto market. This uptrend also stems from specific developments within the Shiba Inu ecosystem. Specifically, Shibtoshi cited positive sentiments around Shibarium, Shiba Inu’s Layer 2 scaling network.
The SHIB team designed Shibarium to reduce transaction costs and improve speed. Shibtoshi said this development enhances the ecosystem’s functionality, making SHIB more attractive to investors and developers.
The SquidGrow founder also highlighted Shiba Inu’s token burn mechanism as a key development adding to the ecosystem’s utility and attractiveness. The burning process involves sending SHIB tokens to a wallet address where they become permanently inaccessible. This helps to create scarcity by reducing the quantity of tokens in circulation.
Notably, the SHIB burn mechanism has positively propelled the token’s price, as CNF mentioned in a previous article. Shibtoshi noted that introducing ShibaSwap, a decentralized trading platform, has further added to Shiba Inu’s appeal.
As CNF noted earlier, ShibaSwap has been integrated into Shibarium. The integration expands ShibaSwap’s offerings by enabling the creation of new liquidity pools on Shibarium, thus facilitating easy token swaps across both platforms.
Other developments within the Shiba Inu ecosystem fueling bullish momentum include the growing importance of BONE and TREAT tokens. The TREAT token, with its L3 advantage, is anticipated to increase the Shiba Inu ecosystem’s utility by bringing new features and advantages.
Shibtoshi said the anticipation surrounding TREAT’s functionality has generated speculation and additional interest.
Shiba Inu’s Future Prospect and Technical Analysis
Shibtoshi affirmed that Shiba Inu’s recent price surge is sustainable. He cited technical analysis and indicators that can help SHIB sustain its uptrend, including moving averages, Relative Index Strength (RSI), and the Bollinger Band.
However, he acknowledged the possibility of a price correction for SHIB and stated that critical resistance levels and Fibonacci retracements will show where SHIB will face a challenge.
Surprisingly, SHIB is currently experiencing bearish movements. As of this writing, its price has dropped over 2% in the past 24 hours to $0.00001607, and the trading volume has dropped by 40.9% to $487 million.
On the technical front, SHIB trades slightly above the daily chart’s 100 Exponential Moving Average (EMA). If this critical support level is breached, the memecoin may face further downward movement, driving the price to a much lower threshold.
The 50 EMA is the next key level below the 100 EMA but is rarely viewed as firm support during times of bearish movements. However, if the 100 EMA is broken, SHIB could quickly move toward the 50 EMA.