According to the data released by CoinGecko, the cryptocurrency market has started to recover from its recent decline. Lower-than-expected inflation prints in the U.S. last week helped boost the risk-averse sentiment in the market and gave investors more confidence in the potential of cryptocurrencies.
The rise of dog-themed cryptocurrencies on Monday can be attributed to the optimism in the market as investors become more confident about the upcoming software upgrade of Ethereum.
Shiba Inu soared more than 50 percent, while its predecessor, DOGE, gained around 15 percent. The meme coins also outperformed Bitcoin and Ethereum.
Shiba Inu will also see additional upgrades and launches in the coming months, with the earliest one being the card game Shiba Eternity.
In the past 24 hours, there have been a total of 82,942,981 $SHIB tokens burned and 15 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. #shibarmy— Shibburn (@shibburn) August 16, 2022
SHIB rallies more than 30 percent
According to data from Bloomberg, Shiba Inu is trading nearly 40 percent higher than last week. The meme cryptocurrency holds its gains while Bitcoin and Ethereum hover around $25,000 and $2,000, respectively.
Despite the lack of catalysts, the 27 percent spike in the price of Shiba Inu on August 14 was still able to trigger a rally. A metric also showed that its burn price increased by over 800 percent in just one day.
More factors on SHIB's price rally
The Shiba Inu token is based on the Ethereum blockchain. Due to the nature of its transaction method, the cost of transactions on the Ethereum blockchain can significantly increase when the number of transactions goes up.
Shiba Inu faced this issue when it launched NFTs last year. Gas fees for each transaction went up to around $800. To solve this, Shiba Inu burns tokens to retain their value.
In the past 24 hours, over 82.9 million Shiba Inu tokens were burned in 15 transactions. It has been reported that the cryptocurrency's creator is removing its token's circulating supply, causing an increase in the value of Shiba Inu.
Shiba Inu's rally began almost ten days after Binance announced that it would add support for the cryptocurrency on its payment cards.
The support from Binance is believed to boost the potential of Shiba Inu to find new users in the European digital currency markets. It also suggests that the cryptocurrency could reach new heights in the coming months.
SHIB's possible price movement
According to analysts at FXStreet, Shiba Inu's price trend will continue increasing. They noted that the cryptocurrency's price target was at $0.00001550.
The resistance level for the cryptocurrency at $0.000016 is considered to be its immediate resistance. A bounce from this level would cause the price to fall to $0.00009.
The number of Shiba Inu transactions during the last trading session decreased slightly. Despite the fall, the buying strength of the cryptocurrency remained strong.
DOGE back in top 10
After the weekend's rally, DogeCoin experienced a price reversal during European morning hours. The cryptocurrency entered the top ten digital currencies by market cap at around $10 billion. It was ahead of Bitcoin and Ethereum while leaving Polkadot (DOT) behind.
The last time the DogeCoin community experienced a spike was in early June. Fans are hoping that the cryptocurrency's favorite meme coin will be able to maintain its upward trend.