Shiba Inu (SHIB) is experiencing a resurgence of interest as it attempts to break free from a prolonged downtrend. The formation of a bullish engulfing candle coupled with support from a key trendline has sparked speculation about a potential price doubling this August.
The broader cryptocurrency market’s revival, coupled with the ongoing hype surrounding meme coins, has provided a favorable backdrop for SHIB. As the second-largest meme coin, Shiba Inu boasts a dedicated community and ambitious plans, including the highly anticipated Shibarium project. Recent updates confirming an automated token burn mechanism for Shibarium have further fueled optimism among investors.
However, technical analysis reveals a complex picture. While the recent price surge is encouraging, SHIB remains confined within a descending channel. A decisive breakout above this channel’s resistance is crucial for sustaining the bullish momentum.
Encouragingly, the MACD and moving averages are displaying bullish signals, suggesting a potential upward trend. However, the DMI indicator currently reflects a bearish bias, indicating caution is warranted.
The recent surge in SHIB burn rates is a positive development, as it could potentially reduce the token’s circulating supply and exert upward pressure on the price.
Also Read: Is SHIB Burn a Waste of Gas? Price Defies Logic After 7300% Surge
Ultimately, whether Shiba Inu can achieve a twofold price increase this month hinges on its ability to sustain the current bullish momentum and break out of the descending channel. While the recent developments are promising, investors should approach with caution and conduct thorough research before making investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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