Shiba Inu (SHIB) price faces bearish pressure despite the broader crypto market recording a relief rally over the weekend.

According to analyst Crypto Elites, Shiba Inu Coin price has formed a cup and handle pattern, suggesting that a bullish reversal is likely to happen.

Shiba Inu price has come a long way from the lows of March 2023. However, despite the recent relief rally in the broader crypto market and several analysts forecasting a potential rally for SHIB, the meme coin continues to face bearish headwinds. This includes a drop in the burn rate and lack of Shibarium TVL.

Let's explore several factors that continue to weigh on SHIB and why a 500% rally may not happen in the near-term.

Analyst Forecasts 500% Rally for Shiba Inu Price

According to renowned analyst Crypto Elites, Shiba Inu Coin price has formed a cup and handle pattern, hinting at the possibility of a bullish reversal. To complete this pattern and confirm an upward momentum, the meme coin needs to break above the neckline.

In his analysis, Crypto Elites noted that a breakout could potentially stir a 12x rally for Shiba Inu price to resistance at $0.000183. Such a rally would constitute a 500% gain from the current price.

However, while this pattern suggests that a bullish breakout for SHIB could be near, the meme coin continues to face several headwinds.

SHIB Burn Rate Drops

The Shiba Inu burn rate has dropped, raising concerns about the impact on a potential price rally.

Data from Shibburn shows that in the last 24 hours, Shiba Inu's burn rate has dropped by 11%. The current burn rate is also down by 26% based on the weekly average.

When the burn rate drops, it means that fewer tokens are being taken out of circulation. If the supply of the token fails to drop as demand remains weak, it could drive the prices lower.

One of the factors that influence the SHIB burn rate is the level of activity on the Shibarium network. When the network activity decreases, it leads to a reduced burn rate that affects the Shiba Inu price performance.

Shibarium TVL Approaches Record Lows

Shiba Inu's layer-2 network, Shibarium, has seen a drastic drop in activity after its Total Value Locked (TVL) recently dropped to its lowest level in over five months. At press time, Shibarium's TVL stood at $2.09M according to DeFiLlama.

Without an increase in network activity on Shibarium, the SHIB burn rate could continue to decline. This may weigh on the price and hinder the potential for SHIB to hit its bullish targets.

What's Next For Shiba Inu Price?

Shiba Inu price completed a double bottom pattern, which suggests that a bullish reversal is likely. However, to resume the uptrend, SHIB needs to flip the resistance at the neckline of this pattern at $0.000014 for the price to target $0.0000159.

The post Shiba Inu Faces Several Headwinds Despite Potential For 500% Rally appeared first on OpenCrux.

As the cryptocurrency market continues to recover from recent lows, several analysts are becoming bullish on specific tokens. Among them, Shiba Inu (SHIB) has been a popular subject of discussion, with some analysts predicting substantial gains for the meme coin in the coming months.

Shiba Inu: A Cup And Handle Pattern Could Stir A 12x Rally For SHIB

According to renowned analyst Crypto Elites, Shiba Inu Coin price has formed a cup and handle pattern, suggesting that a bullish reversal is likely to happen. For the meme coin to complete this pattern and confirm an upward momentum, it needs to break above the neckline.

In his analysis, Crypto Elites stated that a breakout could potentially stir a 12x rally for Shiba Inu price to resistance at $0.000183 (Fib level 0.382). Such a rally would constitute a 500% gain from the current price.

However, while this pattern suggests that a bullish breakout for SHIB could be near, the meme coin continues to face several headwinds.

SHIB Burn Rate Drops 11% In 24 Hours

The Shiba Inu burn rate has dropped, raising concerns about the impact on a potential price rally.

Data from Shibburn shows that in the last 24 hours, Shiba Inu's burn rate has dropped by 11%. The current burn rate is also down by 26% based on the weekly average.

When the burn rate drops, it means that fewer tokens are being taken out of circulation. If the supply of the token fails to drop as demand remains weak, it could drive the prices lower.

One of the factors that influence the SHIB burn rate is the level of activity on the Shibarium network. When the network activity decreases, it leads to a reduced burn rate that affects the Shiba Inu price performance.

Shibarium TVL Approaches Record Lows