- SHIB faces a 26% decline amid plummeting burn rate and whale activity.
- A bullish wedge pattern hints at a potential breakout and rally.
Shiba Inu (SHIB), the world’s second-largest meme coin, has witnessed a significant decline in recent weeks, with its price falling by approximately 24% over the past 30 days. This drop has pushed its market capitalization below $8 billion, positioning SHIB as the 16th-largest cryptocurrency.
Meanwhile, the coin’s burn rate—a critical mechanism designed to reduce its circulating supply—has plummeted by more than 90%, with fewer than 13 million tokens sent to a null address in the past week.
Despite this decline, SHIB has formed a bullish falling wedge pattern on a weekly time frame, signaling a potential breakout. If SHIB manages to break out of this pattern, analysts suggest it could soar to $0.0000324 or higher. However, a weekly candle closing above $0.0000155 is crucial for confirming this bullish outlook.
SHIB’s price currently hovers near a key support level at $0.0000134. The last time it breached this level was in February 2024, and the current retest could support an upcoming rally. While SHIB’s price surged by over a modest 0.01% in the past 24 hours, trading volume increased by 38%, indicating trader participation.
Whale activity remains a significant factor, with seven whales holding 60.19% of SHIB’s circulating supply. Meanwhile, 43 sharks control 12.84%, leaving retail investors with just 26.96% of the supply.
SHIB Path Ahead:
The technical chart indicates that SHIB is under the bearish zone, supported by the 9-day EMA at 0.00001350. Should the bullish momentum persist, the coin could rise to $0.00001451 or potentially $0.00001518. The daily RSI is at 38, which indicates a selling pressure.
Conversely, if the bearish trend continues, Toncoin might retrace to $0.00001083.
As SHIB approaches a critical juncture, its future trajectory will likely depend on whether it can break out of its current price pattern and sustain momentum in the market.
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Source: https://thenewscrypto.com/is-shiba-inus-burn-rate-decline-a-sign-of-trouble-ahead/