Is a SHIB Price Rally on the Horizon?

• With a burn rate of more than 1000%, about 6.54 million SHIB tokens have been removed from circulation, positioning the asset for a rally in the near term. 

• An analyst has predicted that SHIB could “remove another zero” once it successfully secures the $0.00003747 price level. 

Shiba Inu’s (SHIB) burn rate has significantly increased by 1041% in just 24 hours following the recent increase in network activities. According to data by Shibburn, a total of 6.54 million SHIB tokens were burnt within the period. Investigating this, we observed that two of the highest burns were conducted by the same wallet address, “0x608….9fe80”. In two separate transactions, this address burnt a whopping 2.14 million SHIB tokens. 

Another look at historical data shows that the burn rate has greatly improved this month with 10.31 million tokens burnt on October 1 at a burn rate of 320%. Within the period, two addresses dominated the burn with 6.94 million tokens and 3.31 million tokens, respectively. Fascinatingly, the Shib burn rate increased by 33,000% at a point in a 24-hour time frame with more than one billion removed from the ecosystem. Additionally, the Shiba burn rate rose to over 19,930% in just 24 hours to remove 1,881,699,401 in our September 28 report. 

Following this development, analysts have started “painting a bullish picture” for the asset as most technical indicators affirm this position. Our analysis of CoinGlass data, for instance, showed that SHIB Futures Open Interest has surged by 20% to $52.93 million. In addition to this, demand for the asset has increased significantly, pushing the price up by 6% in the last 24 hours to trade at $0.00001785. Our market data also shows that the 24-hour trading volume of SHIB has increased by 26%, with $492 million exchanging hands. 

Shiba Inu’s (SHIB) Price Analysis

Subjecting the asset to technical analysis, a renowned trader identified as Javon Marks recently predicted that SHIB could surge by 351%. According to his analysis, the asset has broken out of a falling wedge pattern which positions it for an upsurge to the $0.000081 resistance level. 

SHIB (Shiba Inu)’s price is starting to return with strength here while continuing to hold broken out of a recently set falling wedge pattern, the crypto analyst noted. Next level can be coming in and it could lead into a massive, >351% move to our larger $0.000081 target.

Similar to this position, analyst BigMike7335 (Michael) has also predicted that SHIB could remove another “zero” in this cycle. Supporting his thesis with a chart, Michael pointed out that SHIB is currently in the middle of a five-wave impulse structure. This implies that the asset could reach and breach the $0.0002479 since this is the lengthiest in the wave sequence. 

Currently, the $0.00003747 price zone is reported to align with the Fibonacci 0.618 region. Securing this zone could push the price to $0.0002 in the medium term according to the analyst. For that to happen, the asset would first have to break out of the $0.000014 and $0.000018 range. According to IntoTheBlock data, 120,930 addresses purchased more than 550 trillion SHIB within this zone.

Amid this potential dramatic surge, CNF has disclosed that SHIB holders with 100 billion to 10 trillion tokens have significantly increased their holdings.