Cover image via U.Today

Large transactions involving Shiba Inu (SHIB) tokens have played a crucial role in stabilizing the market during a recent downturn. Data from crypto analytics platform IntoTheBlock (ITB) reveals that a total of 6.11 trillion SHIB tokens were transferred within the past day, potentially shaping the future recovery of the token.

Factors Driving the Potential SHIB Rebound

Shiba Inu has experienced an 11% drop in price over the last 24 hours, falling to $0.00002585 and risking a significant decline. Despite this decrease, the token has managed to hold the $0.000025 support level since March 20, preventing a further crash.

According to the technical indicators, SHIB is currently oversold on the four-hour chart, with a Relative Strength Index (RSI) of 25. The token is also trading close to the lower Bollinger Bands, suggesting a potential bounce-back in the near future.

The key target for SHIB is to recover the $0.00003 level and build momentum towards reaching $0.00004 again.

Strong Fundamentals Boosting SHIB's Outlook

Shiba Inu has shown resilience in a volatile market that witnessed liquidations surpassing half a billion dollars in the past day. The token has maintained a positive burn rate, surging by over 2,300% as a testament to the community's dedication to the deflationary nature of the protocol.

As a community-focused token, Shiba Inu is transitioning towards offering smart contract capabilities through Shibarium. Despite facing a significant price correction, the burn rate and Shibarium's potential have attracted substantial whale inflows, indicating promising prospects for SHIB's future.