Shiba Inu Coin Price Prediction: Why Is SHIB Underperforming?

It appears that Shiba Inu coin price is underperforming its peers amid the ongoing bullishness in the crypto market. However, after generating only 6.13% in ‘Uptober’, SHIB price is now trying to catch up by posting 9.76% returns in the first 9 days of November.

On Thursday, Bitcoin price broke above $37,000 for the first time since May 2022. The new yearly highs by the biggest cryptocurrency resulted in a market-wide greenery. Consequently, the SHIB coin also showed a very positive price action and gained 3.5% today.

Shiba Inu Coin Burn Rate Soars 704%

As per the latest Shiba Inu news, there has been a strong surge in the burn rate of the dog-themed coin in the last 24 hrs. SHIB burn rate has soared 704% since yesterday as the community sent more than 9.79 million tokens to dead wallets.

The burn rate puts deflationary pressure on the coin’s supply and is one of the primary reasons behind the current bullish price action of the Shib Inu coin. On a weekly timeframe, 120 million tokens have been burned since the start of this week.

SHIB/BTC Pair Rings Alarm Bells

Most of the analysts only analyze the USD pairs of cryptocurrencies. However, while doing so, they ignore the strength of these coins against the most valuable digital asset on the planet i.e., Bitcoin.

Therefore, for an accurate Shiba Inu coin price prediction, we must analyze the price action of the SHIB/BTC pair. The following chart shows that this pair has broken below the 0.000000000232 support level. Therefore, it is better to wait for a reclaim of this support before going long on the SHIB/USD pair.

Another factor worth considering is Bitcoin dominance (BTC.D), which is rising once again after a slight pullback from 54.4%. This is because most altcoins underperform BTC price when BTC.D shows a strong uptrend.

Shiba Inu Coin Price Prediction

If we analyze the SHIB to USD chart on a daily timeframe, we can clearly see that the pair is attempting a breakout from the downtrend. However, it is too soon to predict any upside as the Bitcoin pair of the popular dogcoin is showing some weakness.

Technical analysis also reveals that SHIB price has broken above 200 MA which is a major sign of strength. As long as the Shiba Inu coin price remains above this moving average on the daily chart, there will be a strong chance of a breakout from the downward trendline.