The decrease in the burning rate of Shiba Inu and the subsequent price drop raises the question: can SHIB reclaim its yearly high? The price of Shiba Inu has fallen in line with other cryptocurrencies as the recent rally has slowed down, accompanied by a decline in its burning rate. Currently, SHIB is trading at $0.000024, reflecting a 21% drop from its monthly high.
Decrease in Burning Rate According to Shiburn data, the burning rate of SHIB fell by 30% on November 26, with only 3.4 million tokens burned. A total of 410 trillion tokens have been removed from circulation, which is expected to continue in the coming years. SHIB burning occurs in various ways, including transaction fees on Shibarium and ShibaSwap. Data from Shibarium Scan shows that the network processed over 561,000 transactions, while the number of active addresses in the ecosystem increased to 1.93 million. Shibarium and ShibaSwap:
Decrease in fees and their impact
Despite the increase in transactions, daily fees on Shibarium, the second-layer network, have decreased. On November 25, the fees amounted to only 714 BONE (approximately $342), part of which was converted to SHIB and burned. On ShibaSwap, a decentralized exchange built on Shibarium, the total locked value is $23.2 million. According to DeFi Llama, only 40 active addresses were recorded in the last 24 hours, and the annual revenue from fees is $2.4 million.
Whale Activity and Token Sell-off The decline in SHIB's price is also linked to whale activity, as the largest holders are likely taking profits after the recent rally. The largest transaction on November 26 amounted to a sale of tokens worth $4.8 million, while two other whales sold tokens worth $2.2 million and $1.8 million respectively.
Technical Indicators: A Path to 90% Growth? SHIB Chart | Chart from TradingView Despite the current decline, technical analysis shows that Shiba Inu has significant growth potential. If SHIB reaches its yearly high of $0.000045, it would represent an increase of 90% from its current price. The daily chart shows that SHIB has formed a cup and handle pattern, a known bullish indicator. The upper boundary of this pattern is at $0.000029, and the depth of the cup suggests a potential price increase to $0.000046. Additionally, SHIB has developed a bullish flag characterized by a vertical rally followed by a symmetrical triangle. This pattern often leads to a bullish breakout when the triangle approaches its point of convergence.
Golden Cross and Strong Bullish Trend Another positive sign is the recent formation of a golden cross, where the 200-day and 50-day moving averages intersect. This pattern confirms that the bullish trend remains in place, and SHIB may soon test its yearly high. If the technical indicators come true, Shiba Inu has every chance for significant growth despite the recent decline in the burning rate and whale sales. #Shibarium ,
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