Shiba Inu Price Analysis: Bullish Harmonic Pattern Suggests a 190% Surge

The price of Shiba Inu (SHIB) has displayed a strong bullish harmonic pattern, indicating the potential for significant upward movement. On Sunday, SHIB reached $0.000016, marking its highest price since February and a 52% increase from its lowest point this year.

The recent price surge coincided with Ethereum (ETH) testing the critical resistance level of $2,500 for the first time since February. This upward trend for Ethereum contributed to gains for other popular ERC-20 tokens, including Pepe (PEPE), AAVE, and Uniswap (UNI).

Shiba Inu Burn Rate Skyrockets

One key driver behind Shiba Inu’s price increase is the dramatic rise in its burn rate. On Sunday, the burn rate soared by an impressive 234,584%, resulting in over 19 million SHIB tokens being permanently removed from circulation. Among these transactions, one user burned 17.8 million tokens, while another incinerated 1 million tokens.

In theory, token burns can positively impact a cryptocurrency’s price by reducing its circulating supply. Shiba Inu has burned over 410 trillion tokens since its inception. A significant portion of these burns originated from contributions by Ethereum co-founder Vitalik Buterin.

Shibarium Network Growth Fuels Optimism

The growth of the Shibarium network, Shiba Inu’s layer-2 blockchain, has also played a role in boosting sentiment around SHIB. Over the last 24 hours, Shibarium processed more than 3.76 million transactions, bringing its cumulative total to 1.152 billion. Additionally, the number of total addresses on the network has surpassed 207 million.

Further data shows that the Total Value Locked (TVL) within Shibarium has climbed to $3.84 million, marking its highest level since January 21. This represents a significant increase compared to earlier this year when the TVL stood at $2.15 million. Most of the growth in TVL has been driven by platforms such as ShibaSwap and WoofSwap.

Technical Analysis: Harmonic Chart Patterns Indicate Further Upside

Analyzing the weekly price chart reveals a popular harmonic pattern that supports bullish sentiment for SHIB. The initial XA section of the pattern occurred between SHIB’s highest price point in 2024 and its lowest point in August. The AB section developed through December, followed by the BC section in April this year.

Currently, Shiba Inu appears to be in the CD section of the harmonic pattern, which suggests the potential for a return to its 2024 high of $0.0000455—approximately 190% above its current price level. Additionally, the AC section of the pattern aligns with the price point of $0.000033, representing a double bottom. If SHIB breaks above the neckline at $0.000033, this could confirm the path toward its 2024 high.

Key Takeaways for Investors

For investors interested in Shiba Inu, here are some considerations:

  • Monitor Burn Rates: A rising burn rate reduces token supply, potentially driving price increases.
  • Track Shibarium Metrics: Growing transaction volumes and TVL on Shibarium indicate increasing network adoption.
  • Study Technical Patterns: Harmonic chart formations can offer valuable insights into potential price movements.

Shiba Inu continues to capture attention with its strong price performance, network growth, and token-burning mechanisms. Investors should remain vigilant and conduct thorough research before making decisions in the evolving cryptocurrency market.

Post Views: 0