Shiba Inu fights to sustain the recovery that has been witnessed over the last four days as SHIB burn sequence remains steady since the Shibarium testnet debuted in early March. As a result, billions of SHIB tokens have been removed from circulation over the past week placing the meme coin on the verge of a breakout.
According to the Shibburn tracking service, approximately 2.915 billion SHIB were burned last week. The $SHIB burn tracker tweeted on Monday revealing that this was almost 50% of what the SHIB holders sent to dead wallets when they removed five billion tokens from circulation the previous week.
Over the last 24 hours, 225,049,340 SHIB tokens were destroyed in seven transactions, with the biggest burning 200,583,666 SHIB tokens, according to data from Shibburn.
Shiba Inu Price Eyes A 35% Upswing To $0.00001188
SHIB is trading with a bearish bias at $0.00000880 on the daily timeframe as bulls fight to defend the recent gains and keep the price above the descending parallel channel. Shiba Inu shattered the upper boundary of the falling channel on May 22, to confirm a bullish breakout.
A decisive daily candlestick close above the $0.0000090 psychological level would solidify the recovery with the first line of resistance emerging from the 50-day Simple Moving Average (SMA) at $0.00000975.
Additional barriers lie at the $0.000010 psychological level, the 200-day SMA at $0.00001030 and the 100-day SMA at $0.00001051. Overcoming these barriers would see Shiba Inu rise to return to the $0.00001188 range high, representing a 35.25% uptick from the current price.
SHIB/USD Daily Chart
The bullish outlook is supported by the Moving Average Convergence Divergence (MACD) indicator (MACD), facing north and with the bullish signal that was sent last week still in play. This can be interpreted as a bullish signal asking traders to buy SHIB.
On the downside, the MACD was still positioned below the neutral line in the negative region. This was an indication that the market conditions still favored the upside. Moreover, as described earlier, SHIB traded below all the major SMAs, making recovery an uphill task.
Therefore, increased selling pressure from these buyer congestion zones could see the dog-themed token turn down from the current price to tag the $0.00000841 major support. Below that, the next line of defense would emerge from the upper boundary of the goverging chart pattern at $0.0000080.
In worst case scenarios, SHIB could drop back into the confines of the descending channel,where it could continue oscillating for some time. The last line of defense is provided by the lower boundary of the channel at $0.00000688.
