Shiba Inu price has retreated for two consecutive days, even as the burn rate jumped by over 3,400%.
Shiba Inu (SHIB), the second-largest meme coin, retreated to $0.00002765, down by 16.2% from its highest level this month.
This retreat was mostly due to the ongoing pullback of Bitcoin (BTC) and other cryptocurrencies. Bitcoin slipped below $95,000 as the rally to $100,000 seemed elusive.
Still, crypto analysts believe that SHIB price has more upside now that the altcoin season index has jumped to 80. In most periods, meme coins like Shiba Inu tend to perform well when altcoins are rising.
Another potential catalyst for the coin is the increase in the number of Shiba Inu tokens being burned. Data by Shiburn shows that the burn rate rose by 3,426% to over 2.02 billion. This means that over 410 trillion tokens have now been burned, leaving the circulating supply at 583 trillion.
Token burns are used to create value for a crypto project by reducing the number of coins in circulation. In Shiba Inu’s case, these burned tokens come from fees in projects like Shibarium and ShibaSwap.
Shibarium is the network’s layer-2 network, while ShibaSwap is a decentralized exchange where users swap tokens. Data shows that the ShibaSwap has over $26 million in assets, while Shibarium has handled almost 600 million transactions. The BONE tokens collected in these chains are converted into SHIB and burned.
Shiba Inu price could jump by 60%
Technicals point to a potential SHIB price jump in the near term. It has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) flipped each other. This cross is a popular bullish sign in technical analysis.
Shiba Inu has formed a cup and handle chart pattern, a popular sign of a bullish continuation. The recent consolidation is part of the handle portion of this pattern.
Its MACD indicator has moved above the zero line, while the MVRV indicator has risen to 3.2. Therefore, the coin will likely bounce back and retest the year-to-date high of $0.000045, which is about 63% above the current level. A drop below the support at $0.0000022 will invalidate the bullish view.
