The drop in Shiba Inu’s burn rate and subsequent price decline raises the question: Can SHIB reclaim its yearly high?
The price of Shiba Inu has dropped in line with other cryptocurrencies as the recent rally has slowed, accompanied by a decrease in its burn rate. Currently, SHIB is trading at $0.000024, reflecting a 21% decline from its monthly high.
Drop in Burn Rate
According to Shiburn data, SHIB’s burn rate fell by 30% on November 26, with only 3.4 million tokens burned. In total, 410 trillion tokens have been removed from circulation, a trend expected to continue in the coming years.
SHIB burns occur through various methods, including transaction fees on Shibarium and ShibaSwap. Data from Shibarium Scan shows that the network has processed more than 561,000 transactions, while the number of active addresses in the ecosystem has increased to 1.93 million.
Shibarium and ShibaSwap: Falling Fees and Their Impact
Despite an increase in transactions, daily fees on Shibarium, a layer-2 network, have decreased. On November 25, the fees amounted to just 714 BONE (approximately $342), with part of this converted to SHIB and burned.
On ShibaSwap, a decentralized exchange built on Shibarium, the total value locked stands at $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-Offs
SHIB’s price decline is also influenced by whale activity, with major holders likely taking profits after the recent rally. The largest transaction on November 26 involved the sale of $4.8 million worth of tokens, while two other whales sold tokens worth $2.2 million and $1.8 million, respectively.
Technical Indicators: A Path to 90% Growth?
Despite the current decline, technical analysis suggests Shiba Inu has significant growth potential. If SHIB reaches its yearly high of $0.000045, it would represent a 90% increase from its current price.
The daily chart shows that SHIB has formed a cup-and-handle pattern, a well-known bullish indicator. The upper boundary of this pattern lies at $0.000029, and the depth of the cup suggests a potential price surge to $0.000046.
Additionally, SHIB has developed a bull flag pattern, characterized by a vertical rally followed by a symmetrical triangle. This pattern often leads to a bullish breakout as the triangle approaches its convergence point.
Golden Cross and Sustained 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 intact, and SHIB could soon retest its yearly high.
If the technical indicators hold true, Shiba Inu has a strong chance of significant growth despite the recent decline in burn rate and whale sell-offs.
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