Shiba Inu Price Could Surge 90% as Burn Rate Increases

Shiba Inu (SHIB) has experienced a pullback, entering a bear market with a drop of over 20% from its peak earlier this week. On November 15, SHIB was trading at $0.000024, reflecting the broader downturn in the cryptocurrency market, with Bitcoin and other altcoins also seeing declines.

However, there are signs that SHIB’s price could bounce back, with certain factors that suggest the possibility of a significant rally in the coming weeks. One of the key catalysts for this potential surge is the recent increase in the Shiba Inu burn rate, which has jumped by 115% in the past 24 hours. Over 16.1 million SHIB tokens were burned, reducing the circulating supply and helping to tighten the token’s available supply. This brings the total number of SHIB tokens burned to an impressive 410 trillion, leaving approximately 583 trillion tokens still in circulation.

Token burns are significant because they remove coins from circulation, thus potentially reducing supply and increasing demand, which could contribute to price increases. The surge in burn activity indicates that Shiba Inu’s ecosystem is becoming more deflationary, which is a positive signal for the price of SHIB.

Shibarium Growth and Rising Number of Addresses

Another positive factor for Shiba Inu is the growing adoption of Shibarium, Shiba Inu’s layer-2 blockchain network. The total number of addresses on Shibarium has risen to over 1.89 million, and analysts believe it could reach 2 million in the coming months. This expanding user base is indicative of Shiba Inu’s increasing popularity and the broader utility of its ecosystem.

Additionally, Shibarium has seen a rise in transaction volume, with over 509 million transactions completed in the past few months. The increasing number of transactions on the Shiba Inu network provides a solid foundation for continued price growth. As part of Shibarium’s fee model, some of the BONE tokens collected in transaction fees are converted to SHIB and burned, further reducing the circulating supply and enhancing the scarcity factor for SHIB tokens.

Bullish Sentiment from Analysts

Crypto analysts are optimistic about Shiba Inu’s potential, with some predicting a “parabolic” rally. A prominent SHIB analyst, known as SHIB Bezos, has shared that the coin often experiences rapid price increases (parabolic moves), followed by consolidation before surging again. In his view, the next parabolic move could push SHIB to a new all-time high.

Looking at SHIB’s chart, the bullish sentiment is supported by the formation of a golden cross. This technical pattern occurs when the 50-day moving average crosses above the 200-day moving average, typically signaling further price gains. Additionally, SHIB has formed a cup and handle pattern, which is another bullish signal. The current price retreat is part of the handle formation, and analysts believe that if SHIB breaks above the upper edge of the cup, it could trigger a significant upward move.

Price Target and Potential Surge

If SHIB successfully breaks out from its current consolidation, analysts are targeting a price of $0.000045, which represents a 90% increase from its current price level of $0.000024. This potential rally would mark a return to the year-to-date high, which is seen as a key resistance level for the token.

The combination of an increasing burn rate, growing adoption on Shibarium, bullish technical patterns, and the broader sentiment in the crypto community suggests that Shiba Inu could be on the verge of a significant price surge. With a 90% upside potential, SHIB could see a major rally if these trends continue and the burn rate remains strong. However, as with any investment in cryptocurrency, it’s important for traders and investors to consider the inherent volatility and risks involved.