Shiba Inu Price Prediction: SHIB Could Soon Make a 20% Rebound

Highlights:

• Shiba Inu is trading at a weekly support level
• Despite marketwide selling pressure, support is holding strong
• Core fundamentals like ongoing token burns could trigger SHIB rebound

Shiba Inu (SHIB) is following the broader cryptocurrency market trend where bears are firmly in control. At the time of going to press, Shiba Inu had dropped by 2.77% to trade at $0.00002104. The rising selling pressure is also evident in Shiba Inu’s trading volumes, which have dropped by 32% in the day to stand at $593.81 million.

It indicates that buyer interest has declined as money stays on the sidelines, waiting for an improvement in sentiment. The prevailing sentiment is also validated in Shiba Inu’s price charts, especially on the day chart.

Technical Analysis – Shiba Inu Price Holding Strong at Key Support Level

On the charts, Shiba Inu bears are close to breaching the weekly $0.00002104 support. This points to an accelerated selloff, and if the support gives way, Shiba Inu could drop to $0.00001669. However, if there is a rebound in the price of Shiba Inu and the $000002104 support holds, two scenarios could play out.

The first is a possible consolidation between the $0.00002104 support and the $0.00002449 minor resistance. However, if bulls take control and push the price of Shiba Inu through the $0.00002449 resistance, then a rally to $0.00002878 could follow in the short term. While any of these scenarios could play out, the odds favor a possible consolidation or a rebound.

That’s because Shiba Inu bears appear to be struggling at the $0.00002104 support at the moment. This happening at a time when there are fears of a selloff across the market means long-term holders are not selling their SHIB. It also means that there are buyers who believe Shiba Inu has a future and are buying at the current discounted prices.

SHIB Token Burns a Bullish Signal

Besides the fact bears are struggling at a key Shiba Inu support level, several other factors support a Shiba Inu bullish reversal soon. One of them is the ongoing Shiba Inu token burn. The Shiba Inu community regularly burns tokens to improve long-term supply and demand dynamics. The latest news on this front is that the SHIB token burn has increased by 4,100% in the last 24 hours. 

Shiba Inu is still surging and the burn rate is bogus. 2,133% is a very huge token burn. Enthusiasts are expecting a price of USD 0.001 at the end of this month pic.twitter.com/EscKEyWChx

— DOXA (@Trg_DOXA) January 5, 2025

This has seen 21,709,094 tokens get taken out of circulation. The burn could positively impact Shiba Inu’s price action for two reasons. The first is the positive impression of SHIB in the eyes of investors. The second is that combined with the other token burns that Shiba Inu has done in the past, this could help improve the demand dynamics in the short term.

Shiba Inu Has the Advantage of Market Longevity

Shiba Inu also has the advantage of market credibility. The meme coin space is full of scams that pump for a short while then rug. Shiba Inu is among the top meme coins that have proven their reliability and resilience over the years.

🚨 Shiba Inu Surge Alert! 🚨

A bullish trend for Shiba Inu is in full swing, with trillions of SHIB tokens being traded over the past week, marking a significant uptick in market activity! 📊🔥 On January 3rd, SHIB saw a record 2.59 trillion tokens transacted, showing huge… pic.twitter.com/aTcDKLzsxy

— Yona Gushiken (@yonashib) January 6, 2025

This means big money looking to take advantage of alt-season through meme coins could flow strongly into Shiba Inu. This makes Shiba Inu highly undervalued at current prices when the whole market is experiencing a minor dip.

Broader Market Undervalued and Could Uplift SHIB

The undervalued nature of Shiba Inu is also evident in the fact that broader market indicators show the market still has room for growth. Glassnode data indicates that despite the recent rally that pushed the market to over $3 trillion, there is still room for growth. This is big news, especially for Shiba Inu which is yet to experience any major price rally through the 2024/25 cycle so far.