- Shiba Inu bounce back
- Robinhood adds SHIB support
- Increasing Shiba Inu Institutional Interest
Shiba Inu is on the cusp of breaking out. The meme coin has been trending up, supported by a string of solid underlying fundamentals that continue to fuel buying spree. The long-awaited listing of the meme coin on commission-free trading platform Robinhood and the much-awaited bid event ‘SHIB: The Metaverse’ are some of the underlying catalysts.
SHIBUSD technical analysis
Technical indicators have also turned bullish, affirming a buildup in buying pressure. The Relative Strength Index has already started trending up, rising above the 50 level, signaling bulls are in control. In addition, the meme coin has risen and found support above the 65 exponential moving average, signaling the start of an uptrend.
SHIBUSD finding support above the $0.00002119 mark is the earliest indication that the sell-off that had gripped the meme coin is slowly easing. A recent pullback was fueled by a strong bounce-back, signaling bulls are in control.
The meme coin stabilizing above the $0.00002598 level should pave the way for further upside action, with the $0.00002800 area the next substantial resistance level. A close above the resistance area and above the descending trend line should allow SHIBUSD bulls to steer a rally to highs of $0.00003505, the next substantial key level.
On the flip side, any pull back followed by a close below the $0.00002119 level could trigger renewed sell-off, resulting in the meme coin tanking to 2022 lows of the $0.00001732 area.
Why Shiba Inu is bullish
Shiba Inu has turned bullish in recent days on the trading platform Robinhood adding support for the meme coin. The much-awaited addition marks an important milestone expected to heighten trading volume around the meme coin in the commission-less platform.
The launch of the SHIB: The Metaverse has also had a significant impact on Shiba Inu’s price action in the recent past. The much-awaited event is expected to drive the adoption and utility of the meme coin expected to offer support to price action.
Shiba Inu is reducing supply
Implementing a burn mechanism is another important factor that is helping drive Shiba Inu’s price higher. The burn mechanism has only reduced the number of SHIB tokens in circulation. Reduced supply amid heightened demand was always going to positively impact price action. SHIB token shortage across various exchanges amid rising demand should continue to offer support to further price gains.
A major supply shortage is on the way amid plans to remove 4.4 billion tokens out of circulation. The removal is expected to positively impact SHIB price, which explains why some large wallets have been adding more Shiba Inu into their holdings with every pullback in price.
Some large whales have added $8.95 million worth of Shiba Inu holdings in the recent past. An Ethereum whale has also added $20.4 million worth of SHIB tokens in the recent past, all but painting a bullish outlook among investors.
Shiba Inu has been in consolidation in recent months. However, improving market sentiments in the overall industry could be an early sign of a significant price jump. As scarcity kicks in with the burning of more Shiba Inu coins amid heightened demand in the real world, Shiba Inu’s price could increase significantly. The prospects of Shiba Inu token doubling is high as whale investors have bought huge holdings of the token whenever price pullbacks come into play.