Price Analysis

Shiba Inu Price Analysis: SHIB Burn Rate Soar 418% Amid Finding Bullish Pattern Support Level- What's Next for SHIB?

Mwangi Enos

As of writing today SHIB is trading at $0.00001665 showing a 2.39% increase in the last 24 hours but a strong 30.17% decline over the last 30 days. Its market cap stands at $9.89B while its trading volume in the last 24 hours has gained 9.67% to $513.25M.

SHIB Price Chart: Coinmarketcap

The Shiba Inu community has ramped up its token burning efforts. Over the Last week 360.35 million SHIB tokens were burned resulting in a 418% increase in the weekly burn rate. This aggressive burning strategy has reduced the total supply to an estimated 589.27 trillion SHIB tokens.

The rate of burning does not stop there. According to Shibburn X account more than 18M SHIB tokens were burned in just 24 hours yesterday representing a huge 781.73% gain in the daily burn rate. This community effort of burning the tokens aims to reduce the circulating supply of the tokens and therefore increase the token value.

Despite all this bullish data that favors SHIB price increase, the price has faced rough times looking at its technicals. SHIB  has witnessed 71% drop from its recent high of 0.00004575 recorded on March 5th 2024 to a low of 0.00001266. This downtrend saw SHIB break down below a 2-month ranging channel.

SHIBUSD Daily chart: Tradingview

However, there are signs that this could be the bottom we all waited for before a resurgence. The recent low is acting as a support level retest to a bullish flag support which broke out in mid May. Currently the price is trading to the upside as we await for a higher timeframe confirmation for a shift in trend.

The RSI has recovered from an oversold reading below 30 two days ago to its current level of 43 suggesting that some bullish momentum is building. The Long/Short Ratio from Coinglass data shows an increase of long positions after short positions had previously dominated indicating a potential shift in market sentiment

Source: Coinglass

IntoTheBlock data reveals that 52% of SHIB holders are currently making money at the current price while 45% are at a loss and 3% are breaking even. This distribution suggests a relatively balanced market with a slight edge towards profitability for holders

Data from Changelly expect SHIB to trade between $0.0000166 and $0.0000266 in 2024 with an average price of $0.0000366. This prediction suggests a potential 66.3% return on investment

However it's important to note that the current market outlook for Shiba Inu is mixed. Technical indicators signal a 20% bearish outlook while the fear & greed index displays a score of 29 indicating fear in the market

In the last 30 days SHIB  has had 12 green days, 40% of the time and experienced a price volatility of 14.03%. This volatility backed up with the increased burn rate and recovery from broader crypto market show a positive outlook for SHIB

Solana Price Prediction: Can Solana Smash $400 Amidst JetBolt Meteoric Rise

Will Ethereum Grow 100x This Bull Run and Break Bitcoin Dominance Or Will JetBolt Dominate?

Bitcoin Price Surges Towards $100K Amid $4 Billion ETF Inflows and Pro-Crypto Sentiment

Which Coins Are Whales Buying For the Bull Run: Solana, Toncoin, JetBolt, and Kaspa

Bitcoin (BTC) Hits All-Time High Amidst Market Optimism, New Altcoin Rivals Gaming Giant Immutable (IMX)