Shiba Inu's Slow Burn: Will SHIB Ignite a Breakout Beyond $0.000020?

Shiba Inu (SHIB) is on the verge of a pivotal moment as it tests the crucial $0.000015 resistance level. Can SHIB overcome this barrier and spark a rally towards $0.000020, or will it stall, setting the stage for a further dip?

With long-term projections eyeing a massive breakout to $0.001 by early 2025, SHIB holders are keeping a close watch. However, short-term trends suggest turbulence ahead if SHIB fails to break through this resistance. The SHIB ecosystem is facing two game-changing developments: a sharp decline in burn rates and a potential price explosion on the horizon.

Over the last 24 hours, SHIB’s burn rate has plummeted by 20%, a sign of reduced token scarcity. Despite this, technical indicators show SHIB could be coiling up for a major rebound. Shibburn recently reported 2.5 million SHIB tokens were burned, a 20% drop compared to the 3.1 million burned the previous day. This slowdown is closely tied to reduced activity on Shibarium, Shiba Inu’s Layer 2 network.

Although Shibarium transactions jumped by 187% to 5,430 per day, they still lag behind August’s record of 28,680. Each Shibarium transaction burns SHIB through gas fees paid in BONE tokens, but with lower activity, the burn rate has dropped. Even with an automated burn system introduced in January 2024, the ecosystem's overall burn rate depends heavily on Shibarium’s transaction volume.

Shiba Inu Price Analysis: Eyeing a Breakthrough?

Despite lower burn rates, SHIB’s technical indicators are showing bullish signs. Crypto analyst Krao pointed out a long-term descending trendline that has kept SHIB in check since its October 2021 all-time high of $0.00008854. SHIB has been consolidating between $0.000005 and $0.00003, building tension for a potential breakout.