Shiba Inu (SHIB) price rebounds 32% from multi-month low as token burn rate skyrockets

Shiba Inu (SHIB) has rebounded to $0.000014, up 32% from its March low. It's now hovering near its highest level since March 3.

Shiba Inu (SHIB) is known for its strong community engagement, which often leads to significant surges in trading volume. When the token's price drops, community members band together to buy more of the token, aiming to push the price back up.

This collective effort is evident in the recent recovery of SHIB from its March lows. The token has rebounded by 32% from its lows of $0.00001090 earlier this month, as it hovers near its highest level since March 3.

The recent surge in SHIB price can be attributed to the staggering increase in the token's burn rate. According to ShibBurn, the burn rate soared by over 34,655% on Thursday.

One user burned 1 billion SHIB, and another user, named "0xMavis_", incinerated a similar amount earlier this month.

The token burns help make SHIB a deflationary asset. Over the years, the network has burned more than 410 trillion tokens, leaving a circulating supply of over 584 trillion.

SHIB's recovery comes as Bitcoin (BTC) and other altcoins made some modest rally. After falling to $76,000 in March, Bitcoin rose to $87,000, while the valuation of all coins neared the $3 trillion mark.

Shiba Inu price technicals point to more gains

Technical indicators suggest that the Shiba Inu price could continue climbing in the short term.

The daily chart shows SHIB has formed a falling wedge, a bullish reversal pattern that often signals the end of a downtrend. This pattern consists of two descending and converging trendlines, showing consolidation before a breakout.

The upper trendline connects swing highs since December 8, while the lower trendline links the lows since November 15. The two lines converged near $0.000010, which also marked the lowest level from August 2023.

SHIB has now broken above the wedge's upper boundary, confirming the bullish breakout. It has also crossed above the 25-day moving average, reinforcing the momentum.

The wedge pattern projects an initial target of $0.00002020, a 40% gain from current levels, based on the pattern's maximum height extrapolated from the breakout point.

Shiba Inu's upside could extend even further if the $0.000010 level forms a double-bottom pattern. In that scenario, a breakout toward the neckline at $0.0000334 would imply gains of around 135% from the current price.

However, a drop below $0.000010 would invalidate this bullish forecast.