The price of Shiba Inu has not lagged during the ongoing altcoin sell-off. It has retraced more than 22% from this month's high, but several catalysts could lead to a strong rebound for SHIB. It gained strong support at the 50-day moving average, the burn rate has surged, and the number of daily active addresses remains stable.
As the burn rate increases, the price of Shiba Inu may rebound
With the increase in the number of tokens burned, the price of SHIB will benefit. Data from ShibBurn shows that on December 18, the burn rate surged by 4,766%. Over 5.2 million tokens have been removed from circulation, with a total of over 410 trillion tokens burned. Currently, there are over 584 trillion tokens in circulation on the network.
The destruction of Shiba Inu tokens will benefit the token by reducing the total supply and making it deflationary. Some of these token burns are voluntary, while others come from its ecosystem, such as Shibarium and ShibaSwap. Fees generated BONE tokens will be converted to SHIB and burned.
Shiba Inu Token Burn
SHIB Active Addresses Stable
Meanwhile, even though the token has fallen 22% from this year's peak, the number of active Shiba Inu addresses remains stable. Historically, when cryptocurrencies enter a local bear market, cryptocurrency investors tend to exit.
According to data from IntoTheBlock, in the past seven days, new Shiba Inu addresses increased by 9.10%. During the same period, active addresses only decreased by 5.96%, which is a relatively small number. The number of Shiba Inu addresses with a balance continues to rise, currently at 1.37 million, as shown in the chart below. This number is above the 30-day average of 1.35 million.
These numbers mean that when the price of Shiba Inu plummets, investors do not panic sell.
Shiba Inu Address
SHIB Price Technical Analysis: SHIB Gains Support
The daily chart shows that the price of Shiba Inu has gained strong support at the 50-day moving average. Since September of this year, the token has failed to drop below this moving average. The token has also gained support at the Ichimoku cloud indicator, indicating that it is still in an upward trend.
In addition, the price of Shiba Inu has formed a cup-and-handle pattern, with the top side at $0.00002941. The C&H pattern is characterized by the asset reaching a key resistance level before forming a rounded bottom.
Continued consolidation and pullbacks are part of the handle formation. Therefore, the token is likely to rebound in the coming days. If this happens, the initial target will be $0.00002941, which is the top side of the C&H pattern.
By measuring the depth of the cup and then taking the same measurement from its top side, we can estimate that the price of Shiba Inu will rise to $0.0000477.
Shiba Inu Price
If the token falls below the support level of $0.00002275 (the lowest fluctuation on November 15), the bullish outlook will be invalidated.