Shiba Inu Coin (SHIB) has seen a jump in price, rising nearly 3% today. This comes as the broader cryptocurrency market shows signs of recovery, with the meme coin sector performing particularly well.

Several factors may be contributing to SHIB's recent gains:

Meme Coin Craze

The overall meme coin market cap has risen 4.15% to $49.25 billion. Investors seem drawn to the growth potential and lower prices of meme coins like SHIB, Dogecoin, Pepe Coin, and others, especially in the current volatile market conditions.

Increased Burning Activity

The Shiba Inu burn rate, which reduces the total supply, jumped over 6,000% recently. While the rate has only increased 12% in the last 24 hours, a total of 410.72 trillion SHIB tokens have been burned so far.

Upcoming Developments

The Shiba Inu team announced plans to launch a Web3 version of the popular game Shiba Eternity, integrating it with the Shibarium layer-2 solution. This is expected to launch in Q3 2024, and revenue generated will be used to enhance the burning of SHIB and LEASH tokens.

Despite the market's tumultuous state, on-chain data and experts suggest SHIB could continue its rally. The coin's Relative Strength Index (RSI) of 31 indicates an oversold condition, potentially attracting whales to buy the dip. Open Interest in SHIB has also risen 1.32% to $35.66 million, showing increased investor interest.

As of writing, SHIB trades at $0.00001769. Analysts believe it could reach the crucial resistance level of $0.00002, with support at $0.00002083 and $0.00001627 playing a key role in maintaining stability. A breakthrough of the resistance levels could lead to substantial gains for SHIB holders.