Shiba Inu déjà vu? 2 reasons SHIB price may rocket higher

The price of Shiba Inu remained steady on Wednesday, with most breast coins returning and a golden cross pattern approaching.

Shiba Inu (SHIB), the second largest meme coin, is up 82% from its August low to $0.000020.

The main catalyst for this rally was investors turning to risk appetite following Donald Trump’s election victory. This choice means the crypto industry could see friendlier regulations in the next four years.

Additionally, there are signs of a strong upward trend in the number of Shiba Inu tokens burned. Data from Shibburn shows that the burn rate increased by 3,674% to 53,312 tokens on November 6.

This increase increased the total SHIB tokens burned to over 410 trillion since the initial offering, reducing the circulating supply to 583 trillion tokens. Token burns generally support the value of the token by limiting the supply.

The increase in SHIB burns occurred even as transactions and fees at the Shibarium were declining. According to ShibariumScan, the average transaction fee dropped to 0.00002 BONE, while total fees dropped to 32 BONE. Some of the BONES collected in the Shibarium are converted into SHIB and burned.

Meanwhile, SHIB’s forward open interest rose to $51.1 million, its highest level since October 30, indicating increased demand.

Shiba Inu price with strong technical characteristics SHIB price chart from TradingView

Technical indicators show that SHIB price may have further upside potential. It remains above the ascending trend line connecting the lowest swings since September 5.

Most importantly, the 50-day and 200-day Exponential Moving Averages are approaching a crossover, approaching a golden cross pattern. In most cases, cryptocurrencies recover after establishing this pattern.

For example, Shiba Inu formed a golden cross in October last year, leading to a rally that reached $0.000045, its highest level since the beginning of the year.

SHIB only needs to break the key resistance level at $0.000021, the September 27 high. A successful move could pave the way for a rise to the May high resistance level at $0.00002940, representing a potential gain of 54% from the current price. level.

On the downside, a decline below the $0.000015 support level could invalidate the bullish view and signal increasing selling pressure.