Shiba Inu (SHIB) price is dropping today, May 13, as the entire crypto market sheds its recent gains due to a notable increase in long liquidations. However, this SHIB drop may be a temporary setback, as a bull flag pattern and an increase in the burn rate suggest the meme coin may be on the verge of rebounding.
At press time, SHIB price trades at $0.0000152, having shed more than 10% in the last 20 hours after dropping from an intraday high of $0.0000175.
Bull Flag Signals Upcoming Shiba Inu Price Rebound
The one-day Shiba Inu price chart shows that this top meme coin might make a massive rebound to the upside after forming a bull flag pattern. However, for SHIB to confirm a bullish reversal, it needs to overcome resistance at the downward sloping resistance, and if this happens, it may spark a 48% rally to $0.000024.
The AO histogram bars have been rising since crossing above the zero line, an indication that the bullish momentum is growing stronger. This suggests that despite the volatility, SHIB has the potential to make additional gains and rally to as high as the 261.8% Fibonacci level of $0.000029.
SHIB/USDT: 1-day Chart
However, traders need to watch out for the RSI indicator that is now heading south and making a lower high as it teases a crossover below the signal line. If this crossover happens, and the RSI falls below 50, it may accelerate the downward momentum, triggering a bearish Shiba Inu price prediction and a fall to $0.0000126.
SHIB Burn Rate Explodes 6,500%
Data from Shibburn shows that the SHIB burn rate has soared, and this further supports the bull case that the Shiba Inu price might make a rebound. In the last 24 hours, more than 28M SHIB tokens were removed from the circulating supply, representing a 6,500% increase compared to the previous day.
SHIB Burn Rate
The surging SHIB burn rate follows increased network usage on Shibarium and the ShibaSwap DEX. According to DeFiLlama, DEX volumes on ShibaSwap have increased by 26% in the last month. At the same time, the Shibarium TVL has pushed past $3.38 million, which may bode well for the Shiba Inu price in the future.
Looming Short Liquidations May Support Uptrend
Data from Coinglass further supports the possibility of a Shiba Inu price rebound, as the liquidation map shows that a significant number of shorts will be liquidated if the price surges to $0.0000163. If SHIB rebounds as the bull flag suggests and reaches this level, it will cause more than $1.53M in short liquidations.
SHIB Liquidation Map
The high network activity and the surging short liquidations may be the catalysts that allow Shiba Inu to outperform newer meme coins that often struggle with low utility. Therefore, as long as the network activity remains high, Shiba Inu price has the bandwidth to make a rebound and target the $0.000024 level in the near term.
The post Shiba Inu Price Sheds 10% But Bull Flag, Soaring Burn Rate Signal Rebound appeared first on CoinGape.
