Shiba Inu and Stellar (XLM): Is This the Best Time to Buy?

Shiba Inu has experienced a 7200% increase in burn rate and Stellar is targeting a 16% recovery.

Stellar (XLM) is consolidating after a volatile period and is currently at $0.38. It’s near critical support and resistance levels that will determine the next move. Holding the $0.35 support, which is the 100-day EMA, is key for upward momentum to continue. If demand increases, XLM could test $0.40 psychological resistance and then $0.44 and $0.45.

XLM/USD daily chart. Source: Trading View

$0.44-$0.45 has been a resistance zone in the past so a break above $0.40 will be the trigger for more action. Technicals show XLM is oversold, so if volume comes in, we could see a bounce. The next resistance is at $0.47 if bulls continue. If XLM falls below $0.35 the 200-day EMA at $0.33 is the next level to watch.

A break below that could see a move to $0.27 which was the price before the November 2024 rally. Broader market trends, especially Bitcoin, will be the driver of XLM’s movement in the coming weeks.

The altcoin surge in Q4 2024 propelled XLM from the lows of $0.075 to a high of $0.63. Despite a retracement, the token retains a substantial annual gain exceeding 280%. Additionally, Stellar’s recent partnership with the United Nations Development Programme (UNDP) to enhance blockchain adoption has strengthened investor confidence.

Another collaboration with OpenZeppelin is expected to facilitate the development of sophisticated decentralized applications (dApps) on the Stellar Network.

These positive advancements have led to bullish community sentiment, with recent Stellar XLM predictions of a potential price increase toward $0.79.

Shiba Inu (SHIB), one of the most popular meme tokens, is moving up due to a huge increase in burn rate, which will impact the price. ShibTorch V2 the new token-burning mechanism has increased the burn rate by 7200%, with over 1.1 billion tokens burned in a day.

Since 2020, over 410 trillion SHIB tokens have been burned so the community is serious about reducing supply and potentially increasing value.

This surge in token burning coincided with a 4% price increase, bringing SHIB to $0.0000196. Technical indicators on the four-hour chart suggest rising bullish momentum. The Relative Strength Index (RSI) is near 58, signaling a neutral-to-bullish outlook among traders.

SHIB/USD daily chart. Source: Trading View

Additionally, the Moving Average Convergence Divergence (MACD) shows multiple green histogram bars, with the MACD line crossing above the signal line, further supporting the bullish sentiment.

If buying pressure sustains, SHIB could break past its current resistance at $0.0000197 and aim for $0.00003. However, maintaining support at $0.000018 is crucial for continued price growth. Should market sentiment weaken, a decline below $0.0000174 could lead to additional selling pressure.

Traders monitoring these assets should assess technical indicators alongside broader market conditions. For Stellar, maintaining the $0.35 support and breaking past $0.40 would confirm a bullish trajectory toward $0.44-$0.45. However, failure to sustain these levels could push the price down to $0.33 or lower.

For Shiba Inu, the rapid increase in its burn rate is a promising long-term factor. Holding above $0.000018 could open the door for an upward move toward $0.00003. However, if SHIB falls below its support, additional declines could occur.

SHIB/USD monthly price action. Source: Brave New Coin

Analysts suggest SHIB is consolidating in the $0.000018 to $0.000020 range and if it holds here it could be a big move.

Beyond the technicals, Stellar’s real world use cases are getting attention. With Decaf, the Stellar Network is enabling digital payments in unbanked regions.

For example, an entrepreneur in Australia, Zac Borrowdale, now pays his employees in USDC which can be converted to local currency in Colombia. Previously Zac had to make dangerous trips to Medellín to withdraw cash, so this is a real world use case for Stellar’s blockchain for financial inclusion.

This integration puts Stellar in a better position in the market as more institutions are exploring blockchain for global transactions. As adoption grows, Stellar could see more demand and thus more price momentum.

Both Shiba Inu and Stellar present opportunities for traders; it’s just a matter of price levels and market sentiment. XLM could bounce back to $0.40 and go higher, and its use case for financial services is good for long-term growth. Shiba Inu’s burn mechanism is reducing supply and if demand is stable, it could be good for the price over time.

Both are opportunities, but it’s all about the price levels. Stellar’s recent work on financial inclusion through blockchain is good for real-world use cases, which could lead to more adoption and price. Shiba Inu’s community is managing supply, and that’s good for the price.