Shiba Inu Price Prediction as Burn Rate spikes 108,495%

Shiba Inu price remained under pressure this week despite having some important catalysts, including the soaring burn rate, Shibarium total value locked (TVL l), whale accumulation, and falling exchange balances. SHIB token was trading at $0.000099. So, will the token rise or fall soon?

Shiba Inu Price on Edge as Burn Rate Soars

One potential catalyst for the Shiba Inu price is that the burn rate spiked on Wednesday. Data compiled by Shibburn shows that over 184 million tokens were burned in the last 24 hours, a 108,495% increase from a day earlier. This burn rate happened as one Shiba Inu holder incinerated 179.5 million tokens.

Most importantly, this huge burn came two days after another user burned 179 million tokens in a single transaction. As a result, there are now over 589 trillion tokens in circulation.

A token burn is widely seen as a bullish catalyst for a cryptocurrency because it reduces the amount of tokens in circulation and its accompanying inflation. For example, Uniswap price surged by over 30% in a day after the developers announced a plan to incinerate tokens worth over $1 billion.

Similarly, OKB price surged by triple digits after OKX announced a major token burn that reduced the total supply to 21 million tokens.

Shiba Inu Exchange Balances is Tumbling

Meanwhile, there are signs that Shiba Inu holders are not selling their tokens, potentially because they expect that its price will bounce back in the near term.

The clearest evidence of this is data showing that the supply of SHIB tokens on exchanges has been in a free fall this year. There are now 284 trillion tokens, the lowest they have been in years.

There were over 302 trillion tokens in exchanges at the peak in October this year. This means that these investors have withdrawn 18 trillion tokens from exchanges over the past few months.

In most cases, cryptocurrencies often rebound when the exchange balance is falling and then crash when balances are in an uptrend.

One reason why the exchange balances is falling is that whale investors have continued to accumulate these tokens. This is a sign that they are buying the dip as they expect it to rebound. These investors now hold 106 trillion tokens, a big increase from last month’s low of 23 billion, a 360% surge.

Shibarium Metrics are Improving

More data shows that Shibarium’s metrics are improving, a few weeks after Shibarium suffered a major exploit. The total value locked (TVL) in the network has increased by 98% over the last 30 days to nearly $2 million. Most of the protocols in the network have seen a surge in assets,

Shibarium’s goal was to provide Shiba Inu with utility by transforming it from being just a meme coin. Most importantly, the goal was to have fees in the network be transformed from BONE to SHIB and then incinerated. Over time, Shiba Inu has not achieved this goal as its fees have been minimal.

Shiba Inu Price Technical Analysis

Technical analysis suggests that the SHIN price will likely remain under pressure in the near term. It remains much lower than the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears are still in control.

The most bearish outlook is that the coin has formed a descending triangle pattern, which is composed of a diagonal line and a horizontal support. It is now hovering at the lower side and has already completed the break-and-retest pattern.

Shiba Inu price has remained below the Supertrend indicator. In most cases, an asset typically remains in a bear market as long as it remains below this level.

Therefore, the most likely scenario is where the token keeps falling as sellers target the October low of $0.000084. A move below that support will signal more downside, potentially to the psychological level at $0.000080.