Shiba Inu (SHIB) Price Surges Amid Accelerated Token Burning

Shiba Inu (SHIB) has witnessed a significant price rebound on January 8th, reaffirming a horizontal support zone. This development has sparked curiosity about whether SHIB can maintain its bounce-back momentum or if it will head south once again.

A technical analysis of the weekly timeframe reveals that SHIB had been trading below a descending resistance line since August 2022, hitting a low of $0.0000054 in June 2023. After numerous failed attempts, the asset successfully broke through this resistance line, which had held for over 480 days, reaching a peak of $0.000011. Last week, Shiba Inu validated the former resistance as support.

The weekly Relative Strength Index (RSI) is trending upwards, with the indicator positioned above 50, indicating the potential for a continued upward movement. Additionally, the burning of SHIB tokens is happening at an accelerated pace. The project's team announced on Twitter that the burn rate had surged by over 600% in the last 24 hours, with 36,370,584 tokens taken out of circulation. Weekly token burning also increased by 11,000%.

The daily chart leans towards a bullish scenario. Despite a drop following an unsuccessful attempt to break the upper boundary of the ascending parallel channel, SHIB formed a green candle on January 8th, confirming the $0.000009 horizontal support area. Currently, Shiba Inu is striving to climb above the channel's midline, though the daily RSI has yet to solidify above the 50 mark.

A move above the channel's midline would confirm the rebound, potentially propelling the asset's price by 28% to the nearest resistance at $0.000012. However, closing below the $0.000009 support zone could nullify the bullish scenario, leading SHIB to a 23% drop to the channel's support line at $0.000008.