Shiba Inu is in recovery mode after plunging to a multi-month low of $0.00001090 earlier this month.
Shiba Inu (SHIB) has rebounded to $0.000014, up 32% from its March low. It’s now hovering near its highest level since March 3.
The recent SHIB price surge comes as the token’s burn rate skyrockets. According to ShibBurn, the burn rate soared by over 34,655% on Thursday after one user burned 1 billion SHIB. Another user incinerated a similar amount earlier this month.
Token burns help make SHIB a deflationary asset. Over the years, the network has burned more than 410 trillion tokens, with the circulating supply now standing at over 584 trillion.
SHIB’s recovery happened as Bitcoin (BTC) and other altcoins made some modest rally. After falling to $76,000 in March, Bitcoin rose to $87,000, while the valuation of all coins neared the $3 trillion mark.
Shiba Inu price technicals point to more gains
Technical indicators suggest the Shiba Inu price could continue climbing in the short term. The daily chart shows SHIB has formed a falling wedge, a bullish reversal pattern that often signals the end of a downtrend. This pattern consists of two descending and converging trendlines, showing consolidation before a breakout.
The upper trendline connects swing highs since Dec. 8, while the lower trendline links the lows since Nov. 15. The two lines converged near $0.000010, which also marked the lowest level from August 2023.
SHIB has now broken above the wedge’s upper boundary, confirming the bullish breakout. It has also crossed above the 25-day moving average, reinforcing the momentum.
The wedge pattern projects an initial target of $0.00002020, a 40% gain from current levels, based on the pattern’s maximum height extrapolated from the breakout point.
Shiba Inu’s upside could extend even further if the $0.000010 level forms a double-bottom pattern. In that scenario, a breakout toward the neckline at $0.0000334 would imply gains of around 135% from the current price.
However, a drop below $0.000010 would invalidate this bullish forecast.
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