Shiba Inu Burn Rate Dips 60.59%, Bearish Flag Forms

Shiba Inu (SHIB) has recently faced a significant dip in its burn rate, falling 60.59% in the past 24 hours. Despite this, market analysts are still anticipating a surge in SHIB’s price, following recent chart patterns and news developments, such as the partnership with the UAE government for blockchain integration.

Shiba Inu Faces Decline in Burn Rate and Bearish Flag Formation

According to records, the SHIB burn rate has declined by 60.59% in the last one day, which might slow down token deflation.

Even though there are fewer numbers, the burn rate of the past one week has increased by more than 3500% for showing the stronger interest of the community in burning the supply. Therefore, there is a bearish flag that has been formed in the case of SHIB and this means that it will further drop if the trend continues downwards.

At press time, SHIB is trading at $0.00001644, continuing to form a bearish flag pattern. Such patterns typically indicate a continuation of the trend, and traders should watch for a breakout or breakdown. However, if the price should go below the flag, then SHIB is likely to decline and find support at other levels.

RSI and MACD Show Bearish Momentum for SHIB

The Relative Strength Index (RSI) for SHIB is at 36.53 and that falls near the oversold level. Although this may depict that selling pressure may subside, the RSI is below 50, which retains the bearish pressure prevailing in the market.

If the RSI goes lower to the 30-level, the bullish run could experience a short-term bounce back in making SHIB’s price move upward but its long-term trend is hard to predict without a more significant bullish force.

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Similarly, the MACD chart indicates a further development of bearish trend. These are signs that selling pressure remains in place as the MACD line is at -0.0000024 while the Signal line is at -0.00000130, and the histogram is negative. This particular aspect still lacks bearing in the form of bullish crossover hence pointing more towards the bearish run pending when a turn around is witnessed.

Bullish Contracting Triangle Pattern and Analyst Targets

However, best_analysts has captured a bullish contracting triangle pattern forming on the SHIB chart. This often results in an up move once the price penetrates the channel up limit line.

Based on the key indicators, the analyst has set several targets concerning the SHIB price with the first target to reach $0.00001688. If the price overcomes this level, the further resistance levels are $0.000017549 and $0.000018966.

According to the analyst, a surge of SHIB may occur if the price level goes beyond the upper trend line of the triangle formation. This may result in an even greater increase in price in the direction of these targets.

Shiba Inu’s Partnership with UAE Government May Drive Growth

Another important factor for SHIB is the partnership with the government of the UAE to promote blockchain technology. According to the analyst such integration presents more viable use cases for SHIB and can spur demand, leading to a rise in prices.

In this case therefore, if this partnership yields positive results, the price of SHIB will improve due to increased adoption. This can act as a signal, to reverse the current bleeding and bring back institutions and investors into the market.