finbold.com
Shiba Inu ($SHIB) experienced a massive 15% rally over the past 24 hours, sending the price of its token from $0.00001348 to $0.00001552 at press time.
With this latest move, $SHIB has now rallied by 19.71% on the weekly chart, bringing year-to-date (YTD) losses down to 26.68%.
Notably, in the last 24 hours, the market capitalization of Shiba Inu has increased from $7.94 billion to $8.97 billion on March 26, per data retrieved by Finbold from CoinMarketCap. That’s a $1.03 billion increase in the span of a day.
The most pressing question now is whether or not $SHIB can maintain this upward trajectory.
The reason behind the $SHIB price rally
Over the last 30 days, $SHIB’s trading volume has seen a 228% increase — indicating both a healthy dose of bullish sentiment as well as significant liquidity. In addition, the token’s trading volume has surged by 130% over the course of March 25.
Another key indicator supporting this new bullish outlook is $SHIB’s long-to-short ratio. Data retrieved by Finbold from Coinglass shows that the long-to-short ratio currently stands at 0.96, indicating steady and rapid improvement from a 0.68 low on March 23.
Shiba Inu token dynamics
Finbold noted a 600% uptick in the token’s burn rate back in late January, and although the rate fluctuates, it has been trending upward ever since. In mid-March, our artificial intelligence (AI) price prediction tool set an average price target of $0.00001568 for $SHIB by the end of March. By that point, the burn rate had more than quadrupled compared to late January.
Then, on March 23, more than 1 billion $SHIB tokens were burned in a single transaction. Contrary to some reports in the crypto space, the owner of the address in question is still unknown.
In addition, the amount of $SHIB on exchanges — the token’s exchange reserve — hit an all-time low on March 21, representing just 14.4% of the cryptocurrency’s circulating supply. Holders redirected a large number of tokens to private wallets, which hints at widespread use of buy-and-hold strategies and further abates selling pressure that could have hampered the current trajectory of $SHIB price movements.
On March 24, Shiba Inu futures were also listed on crypto exchange platform BingX — allowing tens of millions of users to trade it with leverage.
Lastly, the project’s developers recently teased Shib Finance, a major DeFi upgrade that could significantly expand functionality.
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