The Shiba Inu price fell for two consecutive days, even as the burn rate jumped more than 3,400%.
Shiba InuSHIB), the second-largest coin, fell to $0.00002765, down 16.2% from its highest level this month.
This decline was mainly due to the continued decline of Bitcoin (BTC) and other cryptocurrencies. Bitcoin fell below $95,000 as the rally to $100,000 seemed elusive.
Nonetheless, crypto analysts believe that SHIB price has more upside potential now that the altcoin season index has risen to 80. In most periods, meme coins like Shiba Inu tend to perform well when the altcoins are rising.
Another potential catalyst for the coin is the increase in the number of Shiba Inu tokens being burned. Shiburn data shows that the burn rate increased by 3,426% to over 2.02 billion. This means that over 410 trillion tokens have now been burned, leaving the circulating supply at 583 trillion.
Token burns are used to create value for a crypto project by reducing the number of coins in circulation. In the case of Shiba Inu, these burned tokens come from fees from projects like Shibarium and ShibaSwap.
Shibarium is the network’s layer 2 network, while ShibaSwap is a decentralized exchange where users trade tokens. The data shows that ShibaSwap has over $26 million in assets, while Shibarium managed nearly 600 million transactions. BONE tokens collected in these chains are converted to SHIB and burned.
Shiba Inu price could jump 60%
Technical data indicates a potential SHIB price rise in the near term. It formed a golden cross pattern as the 50-day and 200-day exponential moving averages (EMA) reversed. This crossover is a popular bullish sign in technical analysis.
Shiba Inu has formed a cup and handle chart pattern, a popular sign of a bullish continuation. The recent consolidation is part of the handle portion of this pattern.
Its MACD indicator has moved above the zero line, while the MVRV indicator has moved to 3.2. Therefore, the coin will likely rebound and retest the yearly high of $0.000045, which is approximately 63% above the current level. A fall below the support at $0.0000022 will invalidate the bullish view.