- SHIB trades near $0.00001325, with a 512% breakout target possible if the inverse head and shoulders pattern completes.
- Over 25.7M SHIB were burned in 24 hours, marking a 22,598% surge; whale activity also pushes trading volume higher.
- Price remains in a tight range; a break above $0.000015 could lead to a rally, but $0.000011 support is crucial to hold.
On May 3, at the time of writing, Shiba Inu ($SHIB) was trading at $0.00001325, down by 1.72% over 24 hours, based on Shibburn data. Its market cap is at $7.81 billion, with daily losses also reaching 1.70%.
Despite short term weakness, SHIB’s long term outlook is promising with achievable breakout points. Shib Bezos has noted an Inverse Head and Shoulders formation still intact on SHIB’s larger timeframe.
According to the analyst, SHIB appears to be building its final shoulder, with the potential for a major breakout. He stated the breakout target is over 512% above current prices, estimating $0.000081 as a possible level if the pattern confirms.
Accumulation Zone and Key Levels
After declining from over $0.000035 in December to near $0.000010 in February, SHIB found stability in March. Since then, the price has remained within a range from $0.000011 to $0.000015, suggesting possible accumulation.
This range has not been broken as of early May. Volume data further supports a neutral stance in the market. Current daily volume is at 235.26 billion SHIB. While moderate, this volume level does not indicate strong conviction from either side.
Source: Tradingview
The RSI is at 52.31, neither overbought nor oversold. Earlier RSI peaks near 58 suggest some bearish momentum. Meanwhile, the MACD line shows a small lead over the signal line, suggesting mild upward pressure. However, the narrow margin suggests a fragile trend without confirmation.
Burn Rate Surges While Whale Activity Increases
Shibburn also reported a sharp surge in burn activity over the past 24 hours. More than 25.7 million SHIB were burned, a 22,598% increase. Over the last seven days, over 337 million tokens have been burned, rising 297% week-on-week.
Earlier when the Shib burn rate spiked by 1500% on April 9th the price fell by 3%. But during this recent spike, Andrew Griffiths noted increased whale activity. He emphasized that trading volume has spiked while SHIB continues to move within a parallel channel. According to Griffiths, the volume spike could push prices 20% higher toward $0.000016 in the short term.
That projected price aligns with the top of the current range. Breaking this resistance could indicate strength if volume remains elevated. However, failure to hold above $0.000012 could risk a drop back toward $0.000010 or lower.
Breakout or Breakdown Depends on Volume and Price Moves
Resistance is at $0.000015. If broken with strong volume, price may attempt $0.000018 or even $0.000020. However, a breakdown under $0.000011 could invite further losses, especially if broader market sentiment turns negative.
