In recent days, the price of Shiba Inu has lagged behind other popular meme coins. SHIB traded at $0.000026 on Monday, remaining flat since November 10, as investors expect more upward potential for SHIB with the burn rate rebounding.
6.8 million Shiba Inu have been burned, and the price of Shiba Inu may rise by 76%
A potential catalyst for the rise in SHIB's price is the continuous decrease in the number of tokens in circulation due to a large amount of token burning. Data from Shiburn indicates that the burn rate has increased by 40% in the last 24 hours, reaching 4.85 million tokens.
As a result, the number of Shiba Inu tokens has steadily decreased from an initial 999 trillion to 410 trillion, and this figure will continue to decline in the future. Token burning refers to the voluntary transfer of SHIB tokens to inaccessible wallets, thereby permanently removing them from the circulating supply.
These token burns help create value for existing tokens by reducing the number of tokens in circulation. This is often compared to when a company executes stock buybacks, which in turn increases earnings per share.
Some of the top participants in this ecosystem are ShibaSwap and Shibarium. ShibaSwap is a decentralized DEX network where people can swap tokens, while Shibarium is a second-layer network that has completed over 500 million transactions. Data on its website shows that ShibaSwap's trading volume has surged to $75 million this month, hitting the highest level since March.
SHIB Price Analysis: Shiba Inu Bulls Prepare for Uptrend
In a post on X, renowned cryptocurrency analyst Shib Knight predicted that SHIB is preparing for its next move and looks 'promising'.
The most optimistic scenario for Shiba Inu's price rise is the cup and handle pattern on the daily chart. This technical pattern features a rounded bottom that resembles a cup, typically followed by a slight pullback forming the handle. Hence the name.
The target for this setup is $0.000045, obtained by measuring the depth of the cup and adding it to the neckline that connects the swing highs of the cup and handle.
The upper side of this pattern is located at $0.000030, which has been hard to break since May. According to this pattern, ongoing consolidation is part of forming the handle section. During most periods, this pattern is one of the most bullish patterns in the market.
Additionally, since the 50-day and 200-day Exponential Moving Averages (EMA) formed a bullish crossover, the price of Shiba Inu has created a golden crossover pattern. Therefore, if SHIB rises above $0.000030, the next round of upward movement will be confirmed. If this occurs, SHIB could leap to $0.000045, which is the highest level this year, approximately higher than the current level.
On the other hand, if the token falls below the key psychological level of $0.000023, this Shiba Inu price prediction will fail. Dropping below this level would indicate further declines, potentially down to the low of $0.0000158 on October 25.