6.8 million SHIB tokens have been burned, Shiba Inu price expected to rise by 76%
One potential catalyst for the rise in SHIB price is the continuous decline in the number of tokens in circulation due to a large amount of token burning. Data from Shiburn shows that the amount burned in the past 24 hours has increased by 40%, reaching 4.85 million.
As a result, the number of Shiba Inu tokens has continuously decreased from an initial 999 trillion to 410 trillion, and this number is expected to continue to decline in the future. Token burning refers to the voluntary transfer of SHIB tokens or their removal through ecosystem fees to inaccessible wallets, 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 a stock buyback, which in turn increases earnings per share.
Some of the top players in the 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 from its website shows that ShibaSwap's trading volume has surged to $75 million this month, reaching the highest level since March.
The target for this setup is $0.000045, obtained by measuring the depth of the cup and adding it to the neckline, connecting the swing highs of the cup and the handle.
The upper side of the pattern is located at $0.000030, which has been difficult to break since May. According to this pattern, the ongoing consolidation is part of the formation of the handle. For most of the period, this pattern is one of the most bullish patterns in the market.
Additionally, due to the 50-day and 200-day exponential moving averages (EMA) forming a bullish cross, the Shiba Inu price has formed a golden cross pattern. Therefore, if SHIB rises above the cup at $0.000030, the next round of upward movement will be confirmed. If this happens, SHIB could surge to $0.000045, which would be the highest level this year, approximately 76% higher than the current level.
