Shiba Inu Price Eyes 76% Rally As 6.8m SHIB Tokens Burned

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As a seasoned crypto investor with a knack for spotting potential gems and a flair for navigating the volatile market, I find myself intrigued by the recent developments surrounding Shiba Inu (SHIB). Despite its underperformance compared to other meme coins in the past few days, the coin’s robust token burn rate and the growing adoption of ecosystem players like ShibaSwap and Shibarium have piqued my interest.

In simpler terms, over the last several days, Shiba Inu‘s price hasn’t kept pace with other well-known meme coins. As of Monday, Shiba Inu is trading at $0.000026 and has remained stagnant since November 10th. This is because investors are expecting a surge in value as the rate at which tokens are destroyed (burn rate) recovers.

Shiba Inu Price Likely to Rally 76% As 6.8m SHIB Burnt

One potential catalyst for the SHIB price is that the number of coins in circulation continues to drop, helped by the robust token burn. Data by Shiburn shows that the amount of these burns rose by 40% in the past 24 hours to 4.85 million. 

Consequently, the quantity of Shiba Inu tokens has consistently decreased from its initial 999 trillion down to 410 trillion, a number that is expected to keep falling over time. This reduction in tokens is attributed to the process known as token burn, where Shiba Inu coins are transferred to an unreachable wallet, either voluntarily or due to transaction fees within the ecosystem, and permanently eliminated from the circulating supply.

Burning these tokens serves to enhance the worth of the existing ones by decreasing the total amount circulating, similar to how a corporation boosts stock value through a share repurchase program that raises the earnings per share.

In simpler terms, among the key players within this system, we have ShibaSwap and Shibarium. ShibaSwap serves as a decentralized platform where people can trade tokens, whereas Shibarium is a layer-2 network that has executed over 500 million transactions. The data on their website indicates that this month, the trading volume for ShibaSwap reached an impressive $75 million, which marks the highest level since March.

 

SHIB Price Analysis: Shiba Inu Bulls Prepares For Uptrend

In a recent X post, well-known crypto analyst Shib Knight forecasted that the SHIB might be gearing up for its upcoming surge. He described its current state as “ready for takeoff.

The strongest argument for an increase in Shiba Inu’s price could be the appearance of a “cup-and-handle” pattern on its daily chart. This technical configuration features a rounded base that resembles a cup, typically followed by a slight pullback that shapes the handle. This is where the term originates from.

As a crypto investor, I aim to determine my target price by examining the depth of the cup formation and adding it to the neckline level. Then, I connect the highest points of the cup and the handle’s swing highs to establish my potential profit zone.

On top, this design currently sits at approximately 0.000030, finding difficulty to surpass this level since May. As per this particular pattern, the current consolidation is contributing towards the development of a handle section. Typically, this pattern is renowned as one of the most optimistic patterns in the market during typical periods.

Furthermore, it’s worth noting that the Shiba Inu price has displayed a golden cross pattern. This means that the 50-day and 200-day Exponential Moving Averages (EMA) have intersected in an upward direction, signaling a potential bullish trend. If the SHIB coin surpasses the resistance level at approximately $0.000030, there’s a possibility it could reach as high as $0.000045 – its highest point this year – which represents a potential increase of around 76% from its current value.

Conversely, should the Shiba Inu price fall beneath the significant benchmark of $0.000023, this prediction becomes null and void. A decline below that threshold may suggest further drops, possibly reaching as low as $0.0000158 – a level last seen on October 25.

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2024-11-25 17:16