Shiba Inu (SHIB) is approaching a major breakout, with technical indicators suggesting an imminent surge of up to 50%. This, combined with a 6200% burn rate in the last 24 hours, has reinforced the bullish sentiment, reflecting the laws of supply and demand.
Data from Shibburn shows that 290,321 tokens were sent to dead wallets or permanently removed from circulation. This spike in coin burning reflects a community initiative and growing interest in the meme coin as market supply tightens. Additionally, the weekly reduction of 135 million SHIB tokens has fueled bullish sentiment.
In terms of price, the technical analysis of SHIB shows a symmetrical triangle pattern, which often occurs before the market consolidates. This pattern indicates that traders have not yet made a decision, as neither buyers nor sellers dominate. This calm phase could lead to a strong move in either direction. Traders are preparing for a potential bullish trend. Market analysts predict prices will increase by 25% to 50%.
The burn rate of SHIB and Fed meetings
Furthermore, the law of supply and demand seems to favor SHIB, as evidenced by the increase in the Shiba Inu burn rate. A decrease in supply is likely to drive up prices. Over the past week, 135 million SHIB tokens have been burned, signaling ongoing pressure from the supply side. However, investors should monitor upcoming Fed meetings.
Not long ago, Federal Reserve Chairman Jerome Powell recently stated that there is no need to cut interest rates immediately. Powell indicated that a rate cut would need to be considered carefully and the Fed would "proceed to make decisions cautiously."
However, for investors keeping an eye on top cryptocurrencies in the ongoing bullish market, the technical and fundamental factors of SHIB will create a promising rally.
