Can Shiba Inu price really soar to $1 as burn rate jumps?

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed the rise and fall of countless assets, from tech stocks to commodities, and now, cryptocurrencies. The current trajectory of Shiba Inu (SHIB), a meme coin that has captured the imagination of millions, presents an intriguing case study.

Over the weekend, the price of Shiba Inu stayed relatively stable while certain crypto experts maintained a positive outlook.

In simpler terms, the digital currency known as Shiba Inu (SHIB), which is the second most popular meme token within cryptocurrencies, was being exchanged at approximately $0.00002812, representing a 163% increase compared to its lowest point in August.

According to certain experts, Shiba Inu could soon experience a powerful upward trend within the next few weeks. On Reddit user SHIB Mortal’s post, it was suggested that the value of the coin might surge as high as $1 during this bull market.

Shibainu #SHIB Is Going Past $1.00 This Cycle.

If You Agree Follow, Like & ReTweet

— SHIB Mortal (@SHIBMortal) December 5, 2024

In a similar fashion, Daink, who boasts an impressive follower base of more than 88k, anticipates a powerful surge in the coin’s price. His prediction is based on the coin’s robust technical indications evident on the monthly graph.

One frequently mentioned reason for potential increases in Shiba Inu’s price is its continuous token destruction process. As reported by ShibBurn, the daily burn rate surged by a substantial 425%, reaching approximately 71,122,860 tokens within the last 24 hours. This burning has resulted in over 410 trillion Shiba Inu coins being destroyed so far, with a current supply of over 584 trillion coins still circulating.

A token burn refers to the process of removing coins from circulation by sending them to an unreachable wallet. For instance, with Shiba Inu, some tokens can originate within its ecosystem, such as Shibarium and ShibaSwap.

Shibarium, a recently developed layer-2 platform, has processed more than 645 million transactions. It boasts over 2.01 million unique addresses and typically takes an average of 20.9 seconds to confirm each block. Part of the BONE transaction fees within Shibarium are converted to SHIB and permanently removed from circulation.

Another potential catalyst for the Shiba Inu price is that investors are moving their tokens from exchanges. The total tokens on exchanges has dropped by 1.73% in the last seven days to 258.19 trillion. 

Shiba Inu price analysis

The daily graph indicates that the SHIB price has gradually been increasing since it hit a low at $0.00001095 in August. On November 4, it exhibited a very optimistic golden cross pattern when its 200-day and 50-day moving averages intersected.

The price structure has developed into a cup and handle formation, which is often interpreted as a signal for continued growth. More recently, it’s been holding steady while forming the handle part of this pattern. This period of consolidation occurred after it surged to the top of the ‘cup’, and reached a point of weakness according to the Murrey Math Lines.

Given the cup shape’s depth at 67%, it’s reasonable to anticipate a potential bullish breakout in the Shiba Inu price. By extending this distance from the cup’s peak, we can roughly calculate an estimated price rise to around $0.00005470.

It’s theoretically possible for the price of Shiba Inu to reach a dollar, but given it would require an increase of over 3 million percent, such an event seems extremely unlikely.

In the year 2020, Shiba Inu was developed anonymously, under the alias ‘Ryoshi.’ Much like how the inventor of Bitcoin, Satoshi Nakamoto, has kept their identity hidden.

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2024-12-14 15:44