Shiba Inu’s price is poised for a major surge as its token burn rate skyrockets by 940%.

Shiba Inu (SHIB) is showing strong signs of a potential bullish breakout as a combination of factors push its price higher. On November 19, 2024, SHIB’s price stood at $0.000026, a notable rise from its previous low of $0.0000246. This price movement reflects a 142% rebound from its August lows.

A significant catalyst for this upward momentum is the rapid acceleration in Shiba Inu’s token burn rate, which saw a remarkable 940% increase on the same day. Over 3.69 million SHIB tokens were burned, reducing its circulating supply to 583.7 trillion tokens. The burn process is integral to the coin’s long-term value proposition, as it removes tokens from circulation through mechanisms like ShibaSwap, Shibarium, and community-led efforts.

The broader market sentiment is also playing a key role in SHIB’s positive outlook. The crypto fear and greed index remains in the “extreme greed” zone, a condition that has historically favored the performance of altcoins, especially meme coins like Shiba Inu. This sentiment is also evident in the meme coin sector, which has seen its market cap rise to $128 billion, surpassing large corporations like Lockheed Martin and Airbus.

From a technical standpoint, Shiba Inu is showing a bullish pattern, specifically a “cup and handle” formation. This pattern often signals a price breakout when the price breaks above key resistance levels. In SHIB’s case, a move above the $0.00002933 level could set the stage for further gains, with the next target being $0.000045, a 76% increase from current prices.

SHIB’s price action also remains above its 50-day moving average, and key metrics like the Market Value to Realized Value indicator have risen above 3, which suggests that the coin is in a profitable position for many holders. However, if the price falls below the critical support level of $0.000020, the bullish outlook would be in jeopardy.

Overall, Shiba Inu’s technical setup, combined with strong market sentiment and a rising burn rate, suggests that the coin is preparing for a significant upward move, potentially unlocking further gains in the near future.