Shiba Inu (SHIB) is exhibiting promising signs of an early recovery, fueled by a powerful combination of tightening supply, significant regulatory breakthroughs, and a notable shift in investor sentiment. These converging factors are building a stronger foundation for the meme coin's potential upward momentum.
Catalysts for a Potential Resurgence
A dramatic acceleration in SHIB's burn rate is significantly impacting its circulating supply, with over 18 million tokens removed in 24 hours and a staggering 831 million over the past week. This aggressive burning strategy, indicating strong community participation, effectively reduces liquid supply and creates conditions ripe for increased volatility as market structure stabilizes. Adding to this bullish backdrop, Japan, known for its stringent crypto regulations, has elevated SHIB to its respected Green List. This crucial regulatory upgrade fast-tracks exchange approvals, placing SHIB in a compliance tier alongside major cryptocurrencies like Bitcoin and Ethereum. Furthermore, Japan's move towards a 20% flat tax for approved digital assets makes SHIB even more attractive to retail traders in a high-engagement market, bolstering its long-term legitimacy and short-term sentiment.
On-Chain Signals and Price Resilience
Beyond these foundational developments, key on-chain metrics further underscore SHIB's improving outlook. Exchange reserves have seen a 1.42% decline, signaling that holders are withdrawing tokens from trading platforms, thereby reducing immediate sell pressure and suggesting a quiet accumulation phase. This dynamic is complemented by a buy-dominant Taker Buy CVD, indicating that aggressive buyers are actively absorbing sell orders during intraday movements. This consistent buying pressure during dips reflects growing confidence and often presages continuation patterns. Concurrently, SHIB has demonstrated resilience by firmly defending the critical $0.0000088 support level, forming a steady bounce on the daily chart. With the Relative Strength Index (RSI) signaling fading downside strength, buyers are now eyeing significant resistance levels at $0.00001029 and potentially $0.00001118, indicating a potential for sustained recovery.
