The Shiba Inu Coin price soared nearly 3% today, amid a recovery noted in the broader crypto market. In addition, the meme coin sector has also shown robust performance today, suggesting that investors are once again shifting their focus toward the segment.

However, despite the recent surge, the ongoing volatile scenario appears to have weighed on the investors’ sentiment. Having said that, the investors are looking for potential reasons behind Shiba Inu Coin price’s surge today, and whether it would be able to continue the momentum.

Why Is Shiba Inu Coin Price Rising?

A flurry of factors could have helped gains in Shiba Inu Coin price today. Here we explore some of the top reasons that might have fueled the recent market sentiment.

Meme Coin Craze

The SHIB price could have soared today amid a strong performance seen in the broader meme coins sector. The overall meme coins sector’s market cap rose 4.15% today to hit $49.25 billion. While Shiba Inu rose about 3%, other major players in the segment like Dogecoin, Pepe Coin, WIF, and others, have also rallied.

It appears that the market participants are still focusing on the sector, given their growth potential. In addition, the lower prices of the meme coins also seem to have attracted the investors’ eyes, especially amid the volatile scenario in the broader market.

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Recent Burning Activity Of Shiba Inu Coin

Shiba Inu Coin also gained immense traction lately due to its significant burn activity. Recently, the Shiba Inu burn rate jumped more than 6,000%, indicating the Shiba Inu community’s focus on the burning mechanism.

Meanwhile, the burning mechanism helps in reducing the overall supply from the market, potentially driving the prices higher. Considering that, the recent burn activity could have helped bolster market sentiment, signaling a potential rally in the coming days.

However, as of writing, the SHIB burn rate only noted a jump of 12% in the last 24 hours with 11.07 million tokens burnt. During writing, a total of 410.72 trillion SHIB tokens were burnt from the initial supply, with the current circulating supply standing at 583.31 trillion.

Latest Developments and Comments From the SHIB Community

The Shiba Inu Coin also caught the investors’ eyes with major announcements. For context, in a recent development, the Shiba Inu team announced the launch of a Web3 version of the popular game Shiba Eternity. This move, which would be integrating the game with the Shibarium layer-2 solution, is expected to launch in Q3, 2024.

Meanwhile, the lead developer of Shiba Inu, Shytoshi Kusama, lauded the development. In addition, he also said that the revenue generated from the game would be used to enhance the burning mechanism of SHIB and LEASH tokens.

Will The Rally Continue?

The market is currently going through a tumultuous trading scenario. The recent market trends and macroeconomic factors appear to have weighed on the risk-bet appetite of the investors. However, despite that, on-chain data and experts still suggest a potential rally in SHIB price in the coming days.

For context, the Shiba Inu Relative Strength Index (RSI) currently stood at 31, suggesting an oversold condition. Having said that, market watchers anticipate a potential rally in the coming days, as whales might take the “buy-the-dip” opportunity to increase their holdings. In addition, the price has declined significantly since March, giving buying opportunity for the whales.

On the other hand, Shiba Inu Open Interest rose 1.32% to $35.66 million, as per CoinGlass data, indicating heightened investors’ interest in the crypto. As of writing, Shiba Inu price rose 2.87% and exchanged hands at $0.00001769.

Given the recent price surge, the market participants anticipate the meme coin to hit $0.00002 soon. Meanwhile, a recent analysis from CoinGape indicates that Shiba Inu Coin is navigating critical resistance at $0.00001968 and $0.00002512, crucial for its upward trajectory.

A breakthrough at these resistance points could drive substantial profits. Conversely, support at $0.00002083 and $0.00001627 plays a pivotal role in maintaining SHIB’s stability amid market fluctuations. Successfully holding these support levels may provide a cushion against volatility, offering steadiness in a turbulent market environment.

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.