Shiba Inu Price in Focus as SHIB Burn Rate Rises

The SHIB burn rate has jumped by 18 million in the last 48 hours as the Shiba Inu price stabilized. Over 12 million tokens were incinerated on Tuesday and another 5.3 million on Wednesday. So, will the increasing burn rate boost the SHIB coin price?

The Shiba Inu price has stabilized this week following a sharp decline to a multi-month low of $0.00001175 on Monday. However, the coin has largely remained muted, in line with other coins.

Two bullish catalysts to watch are the potential pause of US and China tariffs and the upcoming US nonfarm payroll (NFP) data.

A tariff pause may push stocks higher, driving other assets like cryptocurrencies up this week. Trump’s pause on Mexico and Canada tariffs is a good example. Friday’s NFP report will also be a catalyst because of its potential impact on the Federal Reserve. The value of SHIB rises when the Fed turns dovish.

Shiba Inu Price Technical Analysis: Needs to End The Week Above $0.000015

The weekly chart shows that the Shiba Inu price has crashed after peaking at $0.00003328 in November. It dropped below the 50-week moving average and bottomed at the key support level at $0.00001173 on Monday.

This was a notable price since it was slightly below the ascending trendline that links the lowest swings since June 2023. It was also near its lowest swing in September last year.

SHIB price needs to end the week above the key point at $0.000015 to confirm a hammer candle that is forming. A hammer has a long lower shadow and a small body and is one of the top bullish reversal signs. The coin will likely rally to the 50-week moving average at $0.00001915, up 18% above the current level.

The bullish SHIB price forecast will become invalidated if the coin crashes below the ascending trendline. Such a move will point to further downside to the psychological level at $0.000010.

Frequently Asked Questions (FAQs)

1. Will the rising SHIB burn rate boost Shiba Inu price?

The Shiba Inu price has largely remained muted despite the rising burn rate, which may be due to several factors, including the overall market conditions, the volume of tokens being burned, and the total supply of SHIB remaining in circulation. While the burns may contribute to the coin’s value over the long term, their immediate impact on the price can vary.

2. Why has the SHIB price dropped this year?

The SHIB price has dropped this year due to several factors, including the broader cryptocurrency market downturn, which has seen most coins decline in value. Additionally, specific events, such as the pausing of US and China tariffs and the upcoming US nonfarm payroll (NFP) data, could impact SHIB’s price. A pause in tariffs may push stocks and other assets, including cryptocurrencies, higher. The NFP report could also influence the Federal Reserve, with a dovish stance potentially boosting SHIB's value.

3. Can the SHIB coin rebound?

The SHIB coin may rebound if several factors, such as the pausing of US and China tariffs and the upcoming US nonfarm payroll (NFP) data, positively impact the markets. A pause in tariffs could push stocks and other assets, including cryptocurrencies, higher. The NFP report could also influence the Federal Reserve, with a dovish stance potentially boosting SHIB's value. However, the coin's ability to rebound ultimately depends on various market forces and may not be guaranteed.