Shiba Inu Set to Rally? SEC Recognition and Burn Surge Boost SHIB Outlook

T. Rowe SEC filing confirms SHIB as an eligible crypto asset, boosting confidence in the Shiba Inu ecosystem.

Technical indicators are displaying bullish divergence hinting at potential upward movement.

Shiba Inu’s continued burn rate and user growth is reflecting sustained community ecosystem expansion.

Shiba Inu (SHIB) is showing renewed market attention after a recent SEC filing by T. Rowe Price for an active crypto ETF. Sparking optimism and speculation of a possible market breakout across the market.

Technical Patterns Signal Long-Term Breakout Potential

Market analyst @JavonTM1 noted that SHIB appears ready to break out against Bitcoin as a bullish divergence forms on the weekly chart. The price structure has formed a descending wedge pattern and the MACD has been trending upward since mid-2023,signaling waning bearish pressure due to renewed buying strength.

Key swing lows, indicated by the “A” markers on the chart, show where buyers have defended support levels repeatedly. If SHIB decisively breaks above the wedge’s upper boundary, momentum could accelerate toward higher valuations.

The tweet further projected that this move might position SHIB for a substantial upside, with technical conditions aligning for a long-term reversal trend if volume confirms the breakout.

Short-Term Price Pressure and Market Cap Movements

SHIB/USDT MACD has made a bearish crossover and the RSI is at 35.41 almost in the oversold territory, an indication of fading bullish strength, though room remains for a short-term rebound.

Source: CryptoRank

Market capitalization data shows SHIB’s valuation fluctuating between $6.4 billion and $5.6 billion.Despite this, steady volume levels demonstrate active market interest with sellers maintaining short-term control. Sustained buying volume could shift this phase toward stabilization before any extended upward recovery emerges.

Growing Adoption, Burn Activity, and On-Chain Strength

Beyond market charts, Shiba Inu continues expanding its ecosystem fundamentals. Token burn activity surged, with reports noting a 1,993% burn spike involving 10 million SHIB tokens destroyed, alongside another 300% increase in burn rate.

Updates have helped reduce SHIB’s supply which in turn strengthened its long-term outlook. The community continues to grow, with over 1.54 million holders,which is a reflection of strong confidence in SHIB’s future and signaling a possible market comeback ahead.

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