Amid broader market consolidation, SHIB price has once again risen, up more than 3%, as the Shiba Inu burn rate has surged 450% in the past 24 hours. As a result, more than 2.9 million SHIB coins have been removed from circulation, bringing upward pressure on prices.
Will a spike in Shiba Inu burn rates trigger a SHIB price rally?
The SHIB burn rate is a mechanism designed to gradually reduce the circulation of SHIB tokens over time. Therefore, the development team sends a portion of the SHIB tokens to the burn address, permanently removing them from circulation.
According to Shibburn, the Shiba-Inu burn rate has surged 450% in the past 24 hours. As a result, a total of 2,903,600 coins have been removed from circulation, and the SHIB price has responded positively. At press time, the Shiba Inu price is up 3.25% at $0.00001778, with a market cap of $10.48 billion.
Therefore, a total of 410730861486725 SHIB tokens were destroyed from the initial supply, leaving 583516038997683 SHIB tokens in circulation.
Over the past week, SHIB price has remained volatile to a certain extent, facing rejection at $0.000017. However, on the weekly chart, it is still up 5%. But on the monthly chart, Shiba Inu price has surged by a staggering 32% as the entire memecoin industry has seen a strong recovery. This makes SHIB one of the most popular memecoins in 2024.
Analysts give bullish signal on SHIB
Crypto analyst Guangdong Cat listed Shiba Inu (SHIB) as one of the top ten altcoins that are giving a buy signal from here. The key indicator behind this bullish outlook is the “L3 Bankers Fund Flow Trend Oscillator” which is giving a rare buy signal for SHIB.
The analyst further added that this signal last appeared in July 2023, when SHIB price was between $0.000007 and $0.000008. Following the signal last year, SHIB experienced a sharp rebound in February 2024 and remained stable for several months, with the price increasing fivefold to $0.000045 by March.
Analysis based on Fibonacci retracement levels suggests that a similar uptrend could be in store for the Shiba Inu, which suggests potential price targets in the coming months.
Shiba Inu’s ultimate price target is at the 1.618 Fibonacci Extension level, around $0.00047, which could result in a 30x gain. However, analysts warn that while this target is achievable, SHIB must first overcome a significant resistance area before it can be achieved.
In addition to the Shiba Inu burn rate spike, there are other catalysts that have triggered strong price action. Recent market speculation has also suggested that a Shiba Inu ETF is likely to be listed. As a result, analysts are further bullish on the world’s second-largest meme coin.
