Trader Alert: Technical Signals Aligning for Higher Shiba Inu Price, But SHIB Faces New Meme Coin Competition

The meme coin Shiba Inu (SHIB) has seen its price increase around 8% over the past week, trading around $0.0000107 at press time.

This recent uptick builds on the positive momentum SHIB has experienced since early December, when its price broke above the $0.000010 resistance level.

According to technical analysis by altFINS, this break above $0.000010 signaled a continuation of SHIB’s broader uptrend. The analysis points out that after pulling back to $0.0000010, SHIB may now offer a swing trade entry opportunity before potentially revisiting the $0.000012 level.

Previously, following a bullish breakout from a Falling Wedge pattern, SHIB’s price broke above its 200-day moving average. This confirmed a reversal to an overall bullish trend for the meme coin. The 200-day moving average breakout was also successfully retested afterwards.

When looking at SHIB across different timeframes, the trend remains clearly bullish in the short, medium and long term. Momentum indicators also look strong – the MACD line is above the MACD signal line, while the RSI sits above 55. This shows building positive momentum.

In terms of key levels to watch, the nearest support zone for SHIB sits around $0.000010. This level had previously acted as resistance, reinforcing its significance. Below that, the $0.000008 level provides further support. To the upside, SHIB bulls will be targeting the $0.000012 resistance level next.

Shiba Inu Burn Rate and Exchange Holdings Fuel Further Upside Potential

Beyond the positive technical backdrop highlighted above, there are also some key on-chain developments taking place that could act as catalysts for further SHIB upside.

Recently, the amount of SHIB held across cryptocurrency exchanges has dropped substantially. Approximately 8 trillion SHIB has flowed away from exchanges since November. This reduction in exchange holdings has sparked speculation that there may be less selling pressure to contain future price rises.

Tied to this exchange outflow, SHIB’s burn rate has concurrently seen an astonishing 5000% surge over the past month. This burn rate refers to the permanent destruction of SHIB tokens, reducing the overall supply in circulation. A higher burn rate alongside falling exchange holdings is a recipe that many analysts believe could push SHIB prices higher still in the period ahead.

The SHIB ecosystem has certainly seen renewed interest recently, with the token’s price rising almost 30% over the past month. This aligns with broader optimism returning to crypto markets. Meme coins like SHIB often outperform the rest of the market during bullish cycles.

Hot New Meme Coin Sponge V2 Offers Upgraded Features and High Staking Rewards

As the crypto community turns its attention to the next viral meme coin, an emerging candidate is Sponge V2 (SPONGEV2).

This new token represents an upgrade of the popular Sponge meme coin project and ecosystem. Crypto enthusiasts may remember Sponge V1’s epic price run last year, which saw its market cap swell from $1 million at launch to over $100 million by Spring 2023.

Although Sponge V1 has retracted from its all-time high, the project still boasts an impressive base of over 11,500 token holders. It also trades on leading exchanges like MEXC, Gate.io and Poloniex.

The release of Sponge V2 aims to build on V1’s strong foundation by offering enhanced utility and a range of attractive staking incentives. Developers expect these features to propel significant community growth and user adoption moving forward.

Innovative ‘Stake-to-Bridge’ Mechanism for Seamless Token Transition

One of Sponge V2’s key innovations is its Stake-to-Bridge mechanism for transitioning between V1 and V2 tokens. This model provides a straightforward way for existing SPONGE holders to swap their tokens for the upgraded V2 version.

By staking their V1 tokens on Sponge V2’s contract, holders effectively lock their original tokens and receive newly minted V2 tokens on a 1:1 basis in return. There are no extra steps or complications required.

Sponge V2’s elegant bridge not only offers a smooth user experience, but also incentivizes the swap through extremely generous staking rewards. Stakers can earn yields upwards of 40% APY over a 4-year lockup period.

For long-term token holders, these exceptional yields may warrant allocating a portion of their bags to staking the upgrade. This can provide reliable passive income as the project continues expanding.

Play-to-Earn Game and Other Features Driving Adoption

Besides lucrative staking rewards, the Sponge V2 roadmap includes several additional features aimed at boosting utility and adoption.

One key element is the integration of a Play-to-Earn (P2E) game called Sponge Racer. Allowing players to use their V2 tokens within gameplay introduces a new dynamic utility mechanism with added income potential. Gamers can potentially win more tokens through skilled participation.

Of Sponge V2’s total supply of 150 billion, the team has reserved large portions for staking incentives and gameplay rewards. This encourages greater ecosystem participation from token holders over time.

Leveraging its vibrant community of over 30,000 members, Sponge V2 is primed for grassroots-powered growth. There are also plans to ramp up marketing and exchange listings, providing greater visibility and easier token access moving forward.

The recent price declines in Sponge V1 present a buying opportunity for investors interested in the V2 upgrade. With the new features launching and tremendous hype within the project’s inner circle, Sponge V2 offers intriguing value at current prices.

Check Sponge V2

Conclusion

As legacy meme coin Shiba Inu shows impressive technical strength and sees positive on-chain developments, the stage appears set for SHIB to continue its recent bull run. Additionally, newly upgraded token Sponge V2 brings fresh innovations like P2E gaming and high-yield staking to capitalize on the meme coin mania cycle.

For traders seeking exposure to this viral corner of altcoins, both SHIB and SPONGEV2 offer exciting yet differentiated value propositions to consider adding to one’s portfolio.

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The post Trader Alert: Technical Signals Aligning for Higher Shiba Inu Price, But SHIB Faces New Meme Coin Competition appeared first on BeInCrypto.

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