Shiba Inu is expected to experience a significant surge of up to 42% to reach $0.00004. This prediction is based on the formation of a bullish pattern and the proximity to breaking out of the symmetrical triangle pattern.
In the span of just 24 hours, the burn rate of the SHIB-themed asset has increased by 300%, resulting in the removal of 100 million SHIB tokens from circulation.
Shiba Inu’s impressive rise, which briefly put it only $3 billion behind Dogecoin in terms of market cap, was short-lived. The resilience of Dogecoin widened the gap to $8 billion. Currently, Shiba Inu is trading at $0.00002885 with a market cap of $16 billion. On the other hand, Dogecoin has a market cap of $28 billion, making it the 8th largest cryptocurrency with a trading price of $0.1998.
Analysts suggest that on-chain data indicates Shiba Inu could make a remarkable climb to become one of the top ten largest cryptocurrencies by market cap. Major analytic platforms show a significant decrease in active SHIB deposits or daily transfers of Shib tokens from investors to various exchanges. Experienced traders consider this a bullish signal, as it suggests that Shiba tokens are being transferred from short-term investors to long-term investors.
From a technical standpoint, Shiba Inu is on the verge of breaking out of the symmetrical triangle pattern at its current price. This pattern occurs when two converging trend lines meet, indicating market indecision. Several analysts believe that the upcoming Bitcoin halving and the intensity of the burning mechanism could trigger this potential upward trend.
The burn rate of Shiba Inu and the increased activities on Shibarium, a layer-2 blockchain solution, could also contribute to the price movement. Shiba Inu has strategically reduced its token supply in a two-phase process, with the burn rate depending on the activities on the network. The goal is to significantly reduce the supply of Shib tokens, making them scarce and valuable in the long term. As Shibarium experiences more transactions and a rise in gas fees, the token burning process intensifies, creating a self-sustaining cycle of growth and value appreciation.
In the past 24 hours, the burn rate has surged by 300%, resulting in the removal of 100 million SHIB tokens from circulation. Additionally, Shibarium has witnessed a significant increase in activities since its inception, with 411,447 transactions completed on the network, 1.395 million total addresses recorded, and 72k total accounts.
It is predicted that the asset will experience a surge of 42% to reach $0.00004205. However, if this upward move fails, Shiba Inu may lose support at $0.00002584 and fall to $0.00002268, invalidating the bullish predictions.