Shiba Inu (SHIB) Price Prediction: SHIB Price Looks Prime to Enter a Parabolic Rally

Shiba Inu price looks prime for a parabolic rally amid a looming supply crunch and a recovery across the meme coin sector.

The price of Shiba Inu (SHIB) has been closely followed by investors as the meme coin sector continues to recover. In the last seven days, the total meme coin market cap has decreased by nearly 10% from $48 billion to $43 billion at press time.

However, despite this downturn, several bullish tailwinds could propel Shiba Inu price toward the highly anticipated psychological level of $0.001.

One of the main factors that have been closely observed is the Shiba Inu burn rate, which recently skyrocketed after an unknown user burned 1,000,000,000 SHIB tokens. Data from Shibburn shows that this user sent these tokens to the burn address in a single transaction. Yesterday, another address also sent 23M SHIB to the burn address.

This burning activity was largely attributed to a spike in activity on the Shibarium network. Tracking tool DeFiLlama shows that in just one week, Shibarium’s TVL has increased by over $1M and recently reached its highest level since late January.

As Shibarium records an uptick in activity, the burn rate will continue to surge and bring down SHIB’s supply. This will bode well for Shiba Inu price.

However, besides the token burns, Shiba Inu supply on exchanges has also reached its lowest level in four years. According to data from Santiment, SHIB’s exchange experienced a sharp decline earlier this year.

At present, only 100.42 trillion tokens, valued at around $1.3 billion are available on exchanges. The amount of SHIB held on exchanges is only 16% of the meme coin’s circulating supply of 589 trillion tokens.

This decline indicates that many SHIB holders are not holding their tokens on exchanges, which highlights a lack of intent to sell. As this supply continues to fall, it might cause a supply crunch where demand outpaces the supply. This could spark a parabolic rally for Shiba Inu price.

Can Shiba Inu Reach $0.001?

The $0.001 price target is realistic for Shiba Inu as that would give it a $589B market cap. One of the factors that could aid such a rally is a gradual increase in the SHIB burn rate.

Additionally, increased activity on Shibarium could sustain a long-term uptrend. Early Bitcoin advocate Davinci Jeremie previously stated that Shibarium will unlock SHIB’s potential.

The possible launch of a spot SHIB ETF as highlighted by SHIB marketing executive LUCIE could also drive a price rally to $0.001. If Shiba Inu outperforms the rest of the crypto market and attains this price target, it will not only be the largest meme coin but also the largest altcoin.

Shiba Inu Price Analysis

Shiba Inu price today trades at $0.000135 with a 2.5% gain in 24 hours. The meme coin is on the verge of a breakout after breaking above the upper trendline of a descending parallel channel, indicating that bears are losing control as buying pressure rises.

The rising RSI line also supports this bullish Shiba Inu price prediction. This indicator stands at 51, which is a neutral level. However, the making of higher lows shows that selling pressure is easing.

Shiba Inu faces two key resistance levels which, if breached, will confirm a bullish reversal. One of these levels is the 50-day SMA of $0.000141. If the meme coin flips this resistance, it could trigger a 36% surge to the 200-day SMA of $0.00019.

In summary, Shiba Inu price is likely to break crucial resistance at the 50-day SMA, which will confirm a reversal from bearish to bullish trends. The increasing burn rate caused by an uptick in activity on Shibarium as well as the falling supply on exchange could trigger a supply crunch. This could precede a parabolic rally for SHIB.

Frequently Asked Questions (FAQs)

1. Why is Shiba Inu price up today?

Shiba Inu price rose today as the meme coin sector continues to recover following a bearish run earlier this year.

2. Can SHIB price reach $0.001 in 2025?

The price of Shiba Inu will depend on the broader crypto market trends and the specific developments within the SHIB ecosystem.

3. Why is the SHIB burn rate rising?

The Shiba Inu burn rate has been increasing due to a new initiative by the SHIB community to send SHIB tokens directly to the dead wallet address.