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.
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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.
Featured image via Shutterstock
