Despite Recent Decline, Analysts Predict Potential Rally for Shiba Inu Coin (SHIB)

In a recent report by CoinGape, investors have recently noticed the Shiba Inu coin, which is dog-themed, particularly in the context of the meme coin craze.

Despite recent setbacks, Shiba Inu Coin (SHIB) is showing signs of a potential rally. Key factors include a substantial increase in burn rate, favorable technical indicators, and reduced supply from major exchanges, suggesting a bullish outlook for the popular meme coin.

In a recent report by CoinGape, investors have recently noticed the Shiba Inu coin, which is dog-themed, particularly in the context of the meme coin craze. However, meme currencies experienced substantial declines in the context of the recent downturn momentum observed in the broader crypto market. Nonetheless, a few prospective factors could shortly lead to a price increase in the Shiba Inu.

In light of the recent decrease in the price of SHIB, it is worth investigating the potential factors that could contribute to a price increase in the meme coin.

Market optimism has been sparked by the prospective rebound in the SHIB price, as indicated by the most recent technical indicators. For instance, prominent crypto market analyst Ali Martinez recently revealed a potential bullish momentum for the Shiba Inu coin in the coming days in a recent analysis.

Ali Martinez stated in a recent post on X that the TD Sequential chart suggests that the Shiba Inu coin will likely experience positive momentum in the coming days. Furthermore, he noted that the daily chart of SHIB indicates a "buy signal."

This analysis has incited discussions regarding the potential for a SHIB price increase and bolstered market confidence.

Shiba Inu's Weekly Burn Rate Soars 667%, Fueling Optimism for Future Price Increase

Over the past few days, the combustion rate of Shiba Inu has substantially increased, resulting in the removal of a significant quantity of SHIB from the supply. This burning action is generally perceived as a positive development, as it typically decreases the overall supply, leading to a rise in the price of crypto.

The SHIB burn rate for the past 24 hours saw a 62.5% decrease, with 39.87 million SHIB burned. However, the weekly burn rate soared by 667.17% to 398.53 million SHIB, indicating that the growing SHIB community is actively reducing the total supply.

At the time of writing, the total circulating supply of SHIB was 583.18 trillion, with 410.72 trillion tokens burned from the initial supply.

Shiba Inu, Chainlink, and Ethereum See Exchange Supply Drop, Indicating Positive Market Trends

Shiba Inu, Chainlink, and Ethereum have experienced a substantial decrease in supply from the top 10 exchange wallets, according to a recent report by Santiment, an on-chain analytics firm. As per the report, the supply of SHIB decreased by 2.4%, while the supply of LINK and Ether decreased by 2.9% and 8.9%, respectively.

Typically, these reductions in the supply of exchange reserves indicate a favorable trend for cryptocurrencies. Market analysts anticipate a prospective increase in the price of SHIB and the robust burn rate.

In the past 24 hours, Shiba Inu's trading volume increased by 42% to $476.37 million, while the price fell 4.69% to $0.00002077 despite these positive indicators. On June 14, the dominant meme coin experienced a high of $0.00002076 and a low of $0.00001965, which suggests that the digital asset space is volatile.

Conversely, the Shiba Inu Open Interest declined 8.90% to $75.5 million, as indicated by CoinGlass data. Moreover, the SHIB's relative strength index (RSI) was approximately 36, which suggests that the meme coin is currently under significant selling pressure.

Nevertheless, the price drops, and a lower RSI frequently enables investors to purchase at a lower price, which could increase the cost.