Shiba Inu Price Could Surge by 60 Percentage as Burn Rate Skyrockets 3,400 Percentage

Despite a slight pullback in price over the past two days, Shiba Inu (SHIB), the second-largest meme coin by market capitalization, could be poised for a significant price rally, with predictions suggesting a potential 60% increase in the near future. The recent price dip, which brought SHIB down to $0.00002765, represents a 16.2% drop from its highest point this month, largely driven by broader market movements. Specifically, the decline in Bitcoin’s (BTC) price, which has slipped below $95,000, has sparked a retreat across many major cryptocurrencies. As Bitcoin’s rally toward $100,000 falters, it has impacted altcoins, including Shiba Inu.

However, despite the recent price dip, analysts remain optimistic about Shiba Inu’s potential upside. The altcoin season index has surged to 80, which typically signals a favorable environment for meme coins like Shiba Inu to thrive. Historically, meme coins tend to perform well when altcoins are in a rising trend, and this could bode well for SHIB in the coming weeks.

Shiba Inu's Burn Rate Soars

One of the key drivers behind Shiba Inu's potential price surge is the massive increase in its burn rate. According to data from Shiburn, the burn rate for Shiba Inu has skyrocketed by 3,426%, with over 2.02 billion SHIB tokens burned recently. To date, more than 410 trillion tokens have been burned, significantly reducing the circulating supply, which now stands at approximately 583 trillion SHIB tokens.

Token burns are a common strategy used by crypto projects to create value for their ecosystem by decreasing the overall supply. For Shiba Inu, these burns are largely driven by transactions and fees on the network’s key platforms: ShibaSwap and Shibarium.

• ShibaSwap, a decentralized exchange, allows users to swap tokens and currently holds more than $26 million in assets.

• Shibarium, the Layer-2 solution of the Shiba Inu network, has processed close to 600 million transactions so far. Both platforms contribute to the accumulation of BONE tokens, which are then converted into SHIB and burned, further decreasing supply and creating deflationary pressure.

The exponential rise in burn rate not only reduces supply but could also generate increased demand for SHIB, driving up its value as the total circulating supply continues to shrink.

Technical Indicators Point to a Potential SHIB Price Jump

Several technical indicators suggest that Shiba Inu’s price could see a significant rise in the near future. Key technical analysis patterns and signals are supporting the bullish outlook for SHIB:

• Golden Cross Pattern: Shiba Inu has formed a golden cross, a widely recognized bullish pattern in technical analysis. This occurs when the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA, signaling a potential upward price movement. A golden cross is often seen as an indicator of an impending rally, and it has historically been a strong predictor of price increases for various assets.

• Cup and Handle Pattern: Shiba Inu has also formed a cup and handle chart pattern, which is another popular bullish sign in technical analysis. The consolidation seen in recent days is part of the handle portion of the pattern, suggesting that once this phase completes, the price could break out to the upside.

• MACD and MVRV Indicators: The MACD (Moving Average Convergence Divergence) indicator for SHIB has moved above the zero line, signaling bullish momentum. Additionally, the MVRV (Market Value to Realized Value) indicator has risen to 3.2, further supporting the idea that SHIB could be poised for a rally.

With these positive technical signals in place, analysts predict that Shiba Inu could retest its year-to-date high of $0.000045, representing a potential 63% increase from its current price level of $0.00002765.

What to Watch For

While the technical outlook is bullish, there are still key levels to monitor. If Shiba Inu manages to break above the $0.000045 resistance level, it could pave the way for a continued upward move, potentially pushing the price even higher. However, if the price drops below the crucial support level of $0.000022, the bullish outlook would be invalidated, and the price could face further downside risks.

Conclusion: Shiba Inu's Strong Fundamentals and Burn Strategy Could Drive Future Growth

The recent spike in Shiba Inu's burn rate, coupled with favorable technical indicators, has fueled optimism that SHIB could be primed for a significant rally. As the altcoin season heats up and Shiba Inu continues to see positive price action in line with other meme coins, the combination of reduced supply due to burns and strong market sentiment could drive its price upward. For investors and traders looking to capitalize on potential gains, Shiba Inu’s technical setup and deflationary burn strategy suggest that the meme coin may be on the cusp of a significant price jump—potentially as high as 60% in the near term.

With Shiba Inu continuing to gain attention within the crypto community, it will be important to monitor the project’s upcoming developments, burn activity, and overall market conditions for further clues on its price trajectory.