Could Shiba Inu Ever Hit $1 with the Surge in Burn Rate?

Shiba Inu has seen a strong recovery recently, trading at $0.00002812, marking a 163% increase from its lowest point in August. Technical analysts, such as SHIB Mortal and Daink, remain optimistic about its potential for a bullish breakout, particularly due to strong technical indicators like the golden cross (when the 50-day moving average crosses above the 200-day moving average) and the cup-and-handle pattern, which are commonly seen as bullish signals.

One of the most cited bullish catalysts for Shiba Inu is its ongoing token burn mechanism. The burn rate for Shiba Inu surged by 425%, reaching over 71 million tokens in 24 hours, bringing the total number of tokens burned to over 410 trillion. With a circulating supply of over 584 trillion, this burn process helps reduce the overall supply, which could increase the token’s scarcity and, in turn, potentially boost its value.

Shiba Inu’s Shibarium layer-2 network and the ShibaSwap decentralized exchange contribute to these burns by converting a portion of transaction fees into SHIB tokens, which are then burned. The growing use of Shibarium, which has processed over $645 million in transactions, supports the long-term feasibility of the burn process and may help drive SHIB’s price over time.

Technically, Shiba Inu has been in a slow uptrend since bottoming out at $0.00001095 in August. The formation of a golden cross on November 4 and the cup-and-handle pattern provide additional evidence of potential price increases. According to the cup-and-handle pattern, the price could rise to approximately $0.00005470.

However, the goal of reaching $1 for Shiba Inu is highly unlikely in the near future. For SHIB to reach $1, it would need to increase by 3.02 million percent. To put this in perspective, even with ongoing token burns and increasing utility, the market capitalization required for SHIB to reach $1 would be enormous, surpassing that of major cryptocurrencies like Bitcoin and Ethereum.

For Shiba Inu to reach $1, the project would need to significantly reduce its supply (through continued burning) and see widespread adoption across various industries. This would also require major market shifts, including significant institutional investment, large-scale real-world use cases, and a considerable increase in demand for the token.

In summary, while Shiba Inu may continue to grow, particularly with the ongoing burn process and bullish technical indicators, reaching $1 is an unrealistic target in the near future due to the massive price increase required. However, the token can still experience significant growth as its ecosystem develops, especially with increasing use of Shibarium and higher burn rates. A $1 goal remains a distant vision, but the potential for strong price increases is still very much possible, just at a more reasonable scale.