SHIB Holds Key Support, Volume Spikes 26% – Is a Bigger Bounce Coming?

Shiba Inu (SHIB) is attempting a rebound, trading near $0.00001192 on Thursday, marking a 9% gain in the past 24 hours. After briefly touching a daily high of $0.00001213, SHIB now approaches a key resistance zone near the 20-day Exponential Moving Average (EMA) at $0.00001228.

Clearing the 20-day EMA presents a major hurdle for SHIB bulls hoping to reverse the prevailing downtrend. As a positive for holders, SHIB managed to defend the $0.0000105–$0.0000110 support range over the past few days. This zone has acted as both a structural and psychological floor multiple times since March.

The successful defense of this level, coupled with a 26% spike in trading volume, suggests that “bottom-buyers” might be stepping in, accumulating the token despite broader market uncertainty, as seen on the chart below.

Why Did the Burn Rate Crash?

Adding complexity to the picture, however, is a sharp drop in SHIB’s deflationary activity. Data from tracking service Shibburn shows the token burn rate crashed over 92%, with only 2.6 million tokens reportedly burned in the last 24 hours. This contrasts sharply with recent periods of much higher burn activity.

Shiba Inu (SHIB) Price Analysis

SHIB’s candlesticks remain just below the midline of the Bollinger Bands (BB) indicator, (which aligns closely with the 20-day moving average near $0.00001228), suggesting a cautiously bearish to neutral sentiment. The lower band lies around $0.00001077, which SHIB recently bounced off, hinting at near-term support.

A decisive close above the midline and sustained action toward the upper band ($0.00001433) would be the first bullish signal in weeks.

Moreover, as per the chart above, the Relative Strength Index (RSI) currently reads 41.13, with a slight upward curl after bouncing from the oversold region. The RSI has crossed above its moving average line (yellow), which stands at 44.89, signaling early bullish divergence.

However, it’s still below the neutral 50 mark, indicating that bears remain in partial control of momentum unless bulls push higher soon.

How Is the SHIB Team Responding? Focus on Utility

In a recent post, Lucie, a core marketer in the Shiba Inu ecosystem, called on the community to ignore negative sentiment and instead focus on upcoming technology rollouts.

Without disclosing specifics, Lucie teased innovations that are nearing release and could potentially transform the ecosystem’s utility.

https://twitter.com/LucieSHIB/status/1909684174736245067

One such development is Karma on Puppynet, a system designed to reward user activity within Shibarium’s L2 network.

Lucie stressed that more substantial developments are planned, aiming to shift SHIB’s narrative away from being just a meme coin towards becoming a utility-rich ecosystem.

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