Shiba Inu Rebounds After Sideways Drift; Price Rally Thrills Diamond Hands Shib Army

Shiba Inu (SHIB), the native token of the Shiba Inu ecosystem, started the week with a price rally that thrilled the Shib Army, especially the diamond hands after several days of sideways drift with no directional bias in the horizon.

SHIB saw a 5.77% gain over the past 24 hours when it traded at $0.00000898 from its earlier price of $0.00000849.

Shiba Inu's price has been in an accumulation phase for over a year with patient investors on the lookout for signs of a trend reversal as the altcoin approaches the consolidation's lower limit.

But the altcoin's pattern is evocative of the price action the community witnessed between May and September 2021, which resulted in a meteoric surge of its price to 1,200%.

At the time, Shiba Inu traded in a small range but as it approached the end of consolidation, its Relative Strength Index (RSI) gained strength from trading in the oversold region and began ascending at much higher price levels.

Market analysts noted that the movement was indicative that bulls were beginning to rouse from their sleep.

The present Shiba Inu price consolidation is ongoing, which started in May 2022.

SHIB still has time before it starts to wag its tail and make an explosive uptrend since its RSI has plummeted recently into the oversold region. But what could be behind the current price rally of one of the most popular dog-themed altcoins this week?

Over the weekend, screenshots of the user interface (UI) of the Shiba Inu burning mechanism flooded Twitter.

While the images revealed the mechanism is still in its Alpha version, they highlighted that the Shiba Inu development team led by its pseudonymous lead developer Shytoshi Kusama, make good on their promise of allocating 70% of the Shibarium's gas fees to permanently destroy the tokens, which when done consistently, could help push its price upward.

Another possible contributor to the price rally of the Shiba Inu is the massive accumulation made by whales, which started to acquire trillions of SHIB.

Data from data science company IntotheBlock showed that whales, or the crypto term for individuals or entities that hold large amounts of cryptocurrency enough to influence the market, purchased 26.2 trillion SHIB over the past week, indicating that they have awoken from their slumber.

For the diamond hands' Shib Army, they have the patience to wait for the time SHIB would skyrocket to the moon and since they believe in the crypto asset, they know that the current position of Shiba Inu will not be forever.

Long-time SHIB holder and Shiba Ecosystem official content marketing specialist who goes by the Twitter handle @LucieSHIB is thrilled with the price surge and shared her strong faith in the crypto assets of the ecosystem.

"$SHIB $BONE $LEASH," she tweeted, noting that "All three are strong players in this crypto market and the price movement is an example of that."

Shib Army who uses the Twitter name @BezosCrypto and has been encouraging the community to be patient and keep on holding SHIB said, "At the end of the day, those who are selling their $SHIB at Discounted Prices will be Exhausted, #SHIB will be OverSold & #ShibaInu will rise again like a Phoenix."

Meanwhile, Shib Army who goes by the Twitter handle @CryptoArmy555 also encouraged the community to continue holding on to their Shiba Inu tokens and urged them to "Believe me, this market has no fear and those who are smart collect valuable coins in this market, don't sell a single coin of your diamond, don't let the profiteers fill their pockets with your losses."

A Twitter user who uses the handle @Domeclature and offers the latest news on the Shiba Inu community provided an update on SHIB's price, which at around 6 a.m. ET was trading at $0.0000090.

As of 11:23 a.m. ET, Shiba Inu saw a 1.66% gain over the past 24 hours and was trading in the green zone at $0.000008783 with a 24-hour volume of $149,910,394, according to the latest data from CoinMarketCap.