Shiba Inu (SHIB) Price Drops 21% as Whales Sell the Meme Coin, but Technical Indicators Hint at a 90% Rally

SHIB price joined other cryptocurrencies in a steep sell-off as the recent rally took a breather and the burn rate declined.

Shiba Inu (SHIB) price encountered selling pressure as the coin joined other cryptocurrencies in a sell-off following the recent rally.

What Happened: The second-largest meme coin fell 21% from its highest level in November, trading at $0.000024 at the time of writing, according to CoinMarketCap.

The burn rate of the coin also declined by 30% on Saturday, as data from Shiburn showed the coin’s burn rate fell to 3.4 million. The total number of burned coins now stands at 410 trillion, a trend expected to continue in the coming years.

Shiba Inu burns occur in several ways, including Shibarium and ShibaSwap transaction fees. According to Shibarium Scan, the network has processed over 561 transactions, and the number of addresses in the ecosystem has grown to 1.93 million.

Shibarium, a layer-2 network, has seen daily fees decrease despite increased transactions. Fees on Saturday stood at 714 BONE, which is roughly equivalent to $342, with some of these coins converted to SHIB and burned.

ShibaSwap, a decentralized exchange on Shibarium, has over $23.2 million in total assets. According to data from DeFi Llama, there were about 40 active addresses in the past 24 hours, and the total annualized fees reached $2.4 million.

On the other hand, data revealed that Shiba Inu whales were selling the coin, likely taking profits after the recent rally.

The largest whale transaction on Saturday involved selling tokens worth $4.8 million, while two other whales sold tokens valued at $2.2 million and $1.8 million, respectively.

Shiba Inu price could still hit its YTD high. According to technical indicators, SHIB price could rise by 90% to reach its year-to-date high of $0.000045.

On the daily chart, the coin has formed a cup and handle pattern, which is a bullish indicator. The upper boundary of this pattern is at $0.000029. By measuring the depth of the cup, projections indicate the coin could rise to $0.000046, approximately 94% above its current level.

Shiba Inu has also developed a bullish pennant pattern, which is characterized by a vertical line and a symmetrical triangle. Typically, this pattern leads to a bullish breakout when the triangle nears its confluence point.

Moreover, SHIB recently formed a golden cross pattern, where the 200-day and 50-day moving averages intersect. These indicators suggest that the bullish trend remains intact, and the coin may soon retest its year-to-date high.