Shiba Inu (SHIB) Price Jumps 27% As Burn Rate Soars After Dropping to a Crucial Support Level

SHIB price has done well in the past few days as the number of incinerated tokens jumped.

Shiba Inu's (SHIB) price has risen recently as the burn rate increased after the token dropped to a crucial support level.

SHIB’s price went as high as $0.00001381 on Monday, reaching its highest since March 3. At this rate, the coin is now 27% above the lowest level hit this year.

Shiba Inu Price Rises As Burn Rate Increases

The SHIB token has done well in the past few days as the number of incinerated tokens went up. According to data, the SHIB burn rate went up by 1,366% on Monday as one wallet transferred over 12.1 million tokens to a dead wallet.

This burn happened a day after another wallet incinerated over 13.6 million tokens. A token burn occurs when cryptocurrencies in circulation are moved to an inaccessible address. This helps reduce a cryptocurrency’s inflation, which creates value for existing tokens.

Shiba Inu token burns happen when some holders move their tokens to these addresses. The fees generated from the Shibarium network are also burned when they are transferred to an inaccessible wallet and incinerated.

The latest data by ShibariumScan shows that the number of completed transactions in Shibarium has increased to over 952 million. This indicates that transactions will soon surpass the 1 billion mark. The number of addresses in Shibarium has risen to over 170 million.

However, Shibarium’s contribution to Shiba Inu’s burn rate remains minimal. For example, the fees generated in the last 24 hours were just 467 BONE, which is equivalent to just $102.

SHIB Price Technical Analysis Points To A Surge

The daily chart shows that the SHIB coin may be nearing a strong bullish breakout. Oscillators like the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bullish divergence and are now pointing upward.

Additionally, Shiba Inu has formed a double-bottom pattern at $0.000012, with a neckline at $0.0000335. A double bottom is a notably bullish market pattern.

The chart shows that SHIB price has also formed a falling wedge pattern, a popular bullish reversal sign. This pattern consists of two falling and converging trendlines. These lines are nearing confluence, and the coin has moved above the upper side.

Therefore, the token is likely to continue rising, with the immediate target at $0.00001872, the lowest swing on December 20, approximately 40% higher than the current level.

Why SHIB May Never Hit $1

The main reason why Shiba Inu coin price may never hit $1 is that it needs to rise by 752,462% from the current level. Assuming that the current supply of 589.5 trillion remains, a move to $1 would bring Shiba Inu’s market cap to over $589 trillion, much higher than the current world GDP of about $110 trillion.