The Stars Are Aligned for SHIB After Robinhood Announcement

Key Insights:

• It was a bullish session for SHIB on Tuesday.
• News of Robinhood adding Shiba Inu delivered a boost, with Bitcoins of America and burn rates also SHIB positive.
• Technical indicators have turned bullish, with SHIB sitting above the 100-day EMA.

It’s been a busy start to 2022 for SHIB, which had hit a February current-year high of $0.00003545 before testing support at $0.000020.

Despite the bearish start to the year, news updates have been SHIB positive, supporting a run at February’s high and a return to $0.000050 levels.

Robinhood, Burn Rates, and Bitcoin of America Deliver SHIB Support

On Tuesday, news hit the wires of Robinhood adding SHIB to its crypto offering. SHIB was one of four new crypto additions that also included, Solana (SOL), Compound (COMP), and Polygon (MATIC).

Solana, Compound, and Polygon showed a more muted response to the news, reflecting investor interest in meme tokens.

In response to the Robinhood announcement, SHIB struck a day high of $0.00002999 before retreating, with resistance at $0.000030 capping the upside.

This year, other news updates have also been SHIB positive.

Earlier this month, FX Empire reported the inclusion of SHIB on Bitcoin of America ATMs across the U.S. Greater SHIB accessibility is a positive for SHIB. Coupled with the SHIB inclusion on Robinhood and investor interest, demand is likely to rise as a result of increased accessibility.

The other key support mechanism has been burn rates following some high-profile SHIB burn pledges.

According to Shibburn, the total burnt from the initial supply stands at 410,312.3bn, with a max SHIB supply of 999,991.7bn.

While the burn rate over the last 24 hours was modest at just 13.59%, burn pledges and increased SHIB adoption provide a bullish outlook.

In recent weeks, there have been some sizeable SHIB burns. The reduced supply provides SHIB price support.

On Tuesday, Shibburn tweeted 300,123,501 SHIB tokens burned in a single transaction.

In the past hour, there have been a total of 300,123,501 $SHIB tokens burned and 1 transaction. #shibarmy

— Shibburn (@shibburn) April 12, 2022

One negative consideration is the number of SHIB holders, which has been falling.

According to CoinMarketCap, the total number of unique addresses holding SHIB fell to 1,128,221 on Tuesday. Down by 2,659 on the day, the number of unique addresses has fallen from a current-year high of 1,199,453 on March 16.

The downward trend has pegged SHIB back from a breakout in response to the higher burn rates and fall in supply.

SHIB Price Action

At the time of writing, SHIB was down 0.93% to $0.00002667.

Technical Indicators

SHIB will need to avoid the day’s $0.0000263 pivot to make a run on the First Major Resistance Level at $0.0000306. SHIB would need the broader crypto market to support a break out from Tuesday’s high of $0.00002999.

Another extended rally would test the Second Major Resistance Level at $0.0000344 and resistance at $0.000035. The Third Major Resistance Level sits at $0.0000424.

A fall through the pivot would bring the First Major Support Level at $0.0000226 into play. Barring another extended sell-off, SHIB should steer clear of sub-$0.0000220 levels. The Second Major Support Level sits at $0.0000182.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. SHIB sits above the 100-day EMA at $0.0000250. This morning, the 50-day EMA converged on the 200-day EMA. The 100-day EMA pulled away from the 200-day EMA, SHIB positive.

A bullish cross of the 50-day EMA through the 200-day EMA would support another breakout session.