🌎 Shiba Inu Price Drops Amid Rising Burn Rate

Shiba Inu’s Recent Price Dip Amid Rising Burn Rate

Shiba Inu Price Retreats Despite Jump in Burn Rate

Shiba Inu, the second-largest meme coin, has experienced a two-day price retreat, dipping to $0.00002765, a 16.2% decrease from its highest level this month. This downturn is largely attributed to the ongoing pullback of Bitcoin (BTC) and other cryptocurrencies.

Despite the recent decline, crypto analysts believe that Shiba Inu’s price has potential for upside, given the altcoin season index has surged to 80. Historically, meme coins like Shiba Inu tend to perform well when altcoins are rising.

Potential Catalysts for Shiba Inu’s Price

One potential catalyst for the coin is the significant increase in the number of Shiba Inu tokens being burned. The burn rate has risen by 3,426% to over 2.02 billion, resulting in the removal of over 410 trillion tokens from circulation, leaving the circulating supply at 583 trillion.

Token burns are used to create value for a crypto project by reducing the number of coins in circulation. In Shiba Inu’s case, these burned tokens come from fees in projects like Shibarium and ShibaSwap.

Shibarium and ShibaSwap: Key Contributors to Token Burns

Shibarium is the network’s layer-2 network, while ShibaSwap is a decentralized exchange where users swap tokens. Data shows that 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.

Technical Analysis Points to Potential Price Jump

Technicals indicate a potential SHIB price jump in the near term. The coin has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) flipped each other, a popular bullish sign in technical analysis.

Additionally, Shiba Inu has formed a cup and handle chart pattern, a popular sign of a bullish continuation. The recent consolidation is part of the handle portion of this pattern.

Key indicators, such as the MACD and MVRV, also suggest a potential price bounce. The MACD has moved above the zero line, while the MVRV has risen to 3.2.

Price Prediction and Key Levels to Watch

Based on technical analysis, the coin is likely to bounce back and retest the year-to-date high of $0.000045, which is about 63% above the current level. A drop below the support at $0.0000022 will invalidate the bullish view.

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