cryptonewsz.com
The Shiba Inu token, the second-largest meme cryptocurrency by market cap, recently soared to a monthly high, reaching $0.00001979 on October 29. Following this high, $SHIB experienced a slight retracement, dipping to $0.00001832—an approximate 3.86% decrease within a day. Despite this short-term pullback, the altcoin’s weekly performance remains solid, bolstered by a more potent bullish trend sweeping across the cryptocurrency market.
Shiba Inu’s recent momentum comes alongside a rise in the number of daily active users on its network. Between Monday and Wednesday alone, active addresses jumped from 3,398 to 5,175, setting a new high for October. This increased user activity reflects the growing interest in Shiba Inu’s blockchain and points to an enduring demand, a factor that could strengthen $SHIB’s price stability.
Adding to the supply-and-demand equation, Shiba Inu’s burn program saw a spike, with a 145% rise over the past week, translating to roughly 121.76 million tokens being removed from circulation. By reducing the total supply of $SHIB tokens, the burn mechanism aims to elevate the cryptocurrency’s valuation, provided demand remains steady or grows.
Technical Indicators Hint at a Short-Term Plateau
On the technical front, Shiba Inu’s chart patterns suggest a possible cooling-off period for the token. The RSI, a key indicator of price momentum, was rising two days ago but has now shifted downward, resting at 55.25. This reading implies that the meme coin could enter a period of price stability before resuming its uptrend. Further reinforcing this consolidation potential is the altcoin’s approach to its 20-day EMA, sitting at approximately $0.00001793.
Currently, this EMA serves as an immediate support level that could trigger a bounce if the token stabilizes here. Additionally, the convergence of $SHIB’s Bollinger Bands signals decreased volatility, with the price nearing the middle band at $0.00001815, implying a likely consolidation zone is forming. Although bullish momentum appears to be pausing, the overall market trend for $SHIB remains upward, indicating this may be a temporary phase in a broader uptrend.
The Road Ahead: Consolidation or Breakout?
As $SHIB navigates this consolidation, it is poised to trade within a defined range in the near term. Holding above the 20-day EMA could keep the current bullish trend intact, while a break below could spark a shift to retest lower support zones around $0.00001665. Notably, a move below the October 3 low of $0.00001548 would signal a more pronounced bearish turn and cast doubt on the token’s medium-term outlook.
On the brighter side, a resurgence in bullish sentiment could steer Shiba Inu back toward recent highs near $0.000020. A successful break above this resistance could signal a stronger bullish outlook, propelling the altcoin to challenge higher resistance points around $0.000023 and $0.000026, levels that align with the 1.212 Fibonacci extension. With volatility looming, the coming days will reveal whether $SHIB’s bullish resilience can break through or if a deeper consolidation awaits in the meme cryptocurrency’s evolving story.