Can SHIB Price Soar 150% as Shiba Inu Burn Rate Skyrockets by Over 3,200%?

Shiba Inu (SHIB) is currently facing a significant downturn, having dropped 61% from its peak of $0.0000329 in December 2024. This decline coincides with a broader weakness in the crypto market, particularly among meme coins like Dogecoin, Pepe, and Floki, which have all experienced substantial losses. However, there are several factors that could potentially push SHIB price higher in the coming weeks, with some analysts predicting a surge of up to 150%.

One of the most notable developments is the sharp rise in Shiba Inu’s burn rate. As of March 8, the daily burn rate surged by 3,253%, reaching 29.3 million tokens burned. Since the inception of the Shiba Inu burn mechanism, over 410 trillion tokens have been removed from circulation, leaving around 584 trillion SHIB still in circulation. The increased burn rate helps reduce the total supply, potentially leading to higher scarcity and an increase in value if demand holds steady or rises.

Another key factor is the MVRV (Market Value to Realized Value) Z-score, which measures whether a cryptocurrency is overvalued or undervalued based on its market price versus its realized value. According to Santiment data, SHIB’s MVRV-Z score has dropped to minus 2.143, its lowest level since August 2024. When the MVRV Z-score has previously fallen to similar levels, it was followed by a 215% surge in price, such as when it rose to its December highs. This suggests that SHIB could be at an attractive price point for investors looking to buy the dip.

On the technical side, SHIB’s price is sitting at a key support level that it has failed to break below since July 2024. This level has proven to be a strong point of resistance for bears, indicating potential for upward momentum. Furthermore, the Accumulation and Distribution (A/D) indicator is rising, signaling that smart money investors are buying into SHIB at current levels.

Additionally, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are showing a bullish divergence, a common indicator of a potential price reversal. A falling wedge pattern has also formed on the daily chart, with the two trendlines converging. These chart patterns are typically considered bullish, as they often lead to breakouts.

Given these technical indicators and the recent burn activity, SHIB is positioned for a possible bullish breakout, with some analysts eyeing a price target of $0.00003325, which would represent a 155% increase from its current level.

Despite Shiba Inu’s significant price drop, the combination of increased token burns, favorable technical indicators, and historical precedents for price surges based on MVRV readings suggests that a recovery is possible. If the burn rate continues to rise and investor sentiment improves, SHIB could experience substantial upward movement. The 150% surge is not out of the question if these factors align, particularly if the broader crypto market stabilizes and meme coins start gaining traction again.