Shiba Inu price held steady on Monday as the crypto market rebounded. SHIB token rose to a high of $0.0000085, up sharply from the year-to-date low of $0.0000075. The token may rebound after forming a highly bullish chart pattern on the daily chart, and as the supply of tokens on exchanges dive.
Shiba Inu Price Has Formed a Highly Bullish Chart Pattern
The daily timeframe chart shows that the SHIB price has been in a strong bearish trend in the past few months as whales continued selling and smart money investors continued dumping their tokens.
There are signs that the token is about to rebound after it formed several bullish patterns. It has formed a giant falling wedge pattern, which is made up of two descending and converging trendlines.
The token has also formed an inverse head and shoulders pattern, which is another highly bullish chart pattern in technical analysis.
Meanwhile, there are signs that it has formed a bullish divergence pattern, which happens when oscillators like the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) are moving upwards as the price continues moving downwards. This pattern also leads to a strong bullish breakout.
Therefore, the most likely SHIB price forecast is bullish, with the next key target to watch being the psychological level at $0.000010, which is about 20% above the current level.
On the other hand, a drop below the important support level at $0.00000753 will invalidate the bullish Shiba Inu prediction.
SHIB Supply in Exchanges is Plunging
Shiba Inu has some notable bullish catalysts that may boost its performance ahead of the Federal Reserve interest rate decision.
One of the most notable catalysts is that the supply of SHIB tokens on exchanges has continued falling in the past few days. As the chart below shows, the supply in exchanges has dropped to 287 trillion, its lowest level in months. It has fallen from this month’s high of 340 trillion, meaning that investors have moved over 53 trillion in the past few days.
A sharp decline in exchange supply is a sign that investors expect the token to rebound in the coming weeks.
Meanwhile, more Shiba Inu tokens are being incinerated. The token burn jumped by 1,244% in the last 24 hours to over 17 million tokens. Most of this burn was caused by one holder who moved over 13.5 million tokens to a burn address.
A token burn is usually bullish because it reduces the amount of tokens in circulation. However, historically, there have been no correlation between a token price and the burn rate. For example, Shiba Inu price has underperformed the market as the network has burned over 410 trillion tokens.