Benzinga - A pseudonymous cryptocurrency analyst said that after the meme cryptocurrency, ‘Dogecoin (CRYPTO: DOGE) Killer' Shiba Inu (CRYPTO: SHIB) rallied, the token may require a significant cooldown before another rise.
What Happened: Crypto analyst and trader AwesomeAvani in a TradingView session metaphorically likened SHIB’s price activity to a team of sled dogs that “has pushed quite hard.”
The trader and analyst elaborated that while the surge seems smooth, it might be time for the token to ease up temporarily. “The chart shows the breakout and then extension above the VWAP lines that are trying to catch up. SHIB needs to rest,” the analyst explained.
VWAP stands for “Volume Weighted Average Price.” It is a technical analysis tool that provides the average price a security has traded throughout the day, based on volume and price. Cryptocurrency traders often use it to help determine market trends and identify trading entry and exit points.
The analyst mentioned taking off half their position and staying ready “to add at least part of it back if the rest is a stable consolidation in the upcoming day.”
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: Another crypto analyst who goes by the pseudonym Rekt Capital shared a chart indicating that the Shiba Inu is poised to climb to $0.000066, signaling an anticipated surge of more than 117%.
$SHIBReached the black resistance where #SHIB rejected from
Now SHIB needs to hold this blue level as new support to potentially develop a new Re-Accumulation Range at the highs#ShibaInu #Crypto #BTC https://t.co/IrSubn2txN pic.twitter.com/ZmqWgKSoWG
— Rekt Capital (@rektcapital) March 6, 2024
According to data from the on-chain analytics platform Santiment reported a dip in SHIB holders, from 1.38 million to 1.37 million, indicating that some investors might be capitalizing on gains. Meanwhile, there was a marked increase in new SHIB accounts per Shibarium Scan, from 57 to 195 within a day.
The practice of burning tokens, intended to reduce supply and potentially drive up the value, saw a total of 177 million SHIB sent to a dead wallet in eight hours. Among these, a notable transaction saw 100.5 million tokens burnt.
Price Action: At the time of writing, SHIB was trading at $0.000031, down 4.1% over the last 24 hours, according to data from Benzinga Pro.
Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?
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