Shiba Inu price could rise 60% as burn rate rises 3,400%

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As a seasoned crypto analyst with over a decade of experience in this wild and unpredictable world of digital assets, I must say that Shiba Inu (SHIB) continues to intrigue me. The recent retreat in its price seems to be a temporary setback, given the significant increase in its burn rate and the promising technical indicators.

Over the past two days, the price of Shiba Inu has dropped, despite a significant increase of more than 3,400% in its burn rate.

The digital currency known as Shiba Inu (SHIB), which is the second most popular meme token, dropped to a value of $0.00002765 – a decrease of approximately 16.2% compared to its highest point this month.

The retreat was primarily caused by the persistent decline in the value of Bitcoin (BTC) and other digital currencies. Bitcoin dipped below $95,000, failing to reach the $100,000 mark that appeared unattainable.

Nevertheless, cryptocurrency experts hold the view that the Shiba Inu coin may experience further growth as the Altcoin Season Index has reached 80. Typically, meme coins such as Shiba Inu usually thrive when other altcoins are increasing in value.

An additional factor driving the value of the coin could be the significant rise in Shiba Inu tokens being destroyed or ‘burned’. According to Shiburn, the burn rate skyrocketed by an impressive 3,426% to over 2.02 billion. This translates to approximately 410 trillion tokens being burned so far, reducing the total supply of tokens in circulation to around 583 trillion.

Wow! 2 Billion $SHIB Burned Today! 🔥

— $SHIB KNIGHT (@army_shiba) December 3, 2024

Token burns serve to enhance the worth of a cryptocurrency venture by decreasing the available supply of coins. For instance, Shiba Inu’s destroyed tokens are derived from transaction fees in platforms such as Shibarium and ShibaSwap.

Shibarium is the network’s layer-2 network, while ShibaSwap is a decentralized exchange where users swap tokens. Data shows that the ShibaSwap has over $26 million in assets, while Shibarium has handled almost 600 million transactions. The BONE tokens collected in these chains are converted into SHIB and burned. 

Shiba Inu price could jump by 60%

In simpler terms, based on technical analysis patterns, there’s an indication that Shiba Inu coin’s price might increase soon. This is due to the formation of a ‘golden cross,’ where the 50-day and 200-day moving averages have switched positions. The golden cross is often seen as a positive sign in technical analysis, suggesting potential price growth.

The dog breed Shiba Inu appears to be following a well-known chart pattern called a “cup and handle,” which often signals an optimistic increase in price. The current price stability falls under the “handle” segment of this pattern.

The MACD line has crossed above the zero mark, and the MVRV indicator is now 3.2. This suggests that the price of the coin could increase, possibly reaching a level close to its highest point this year, approximately 63% higher than its current value. However, if it falls below the support at $0.0000022, the bullish outlook might not hold true.

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2024-12-03 18:38