Shiba Inu’s price has increased recently as the burn rate jumped after it dropped to a crucial support level. The SHIB token rose to a high of $0.00001381, reaching its highest level since March 3. The price is now 27% above its lowest level this year.
Shiba Inu Price Rises As Burn Rate Rises
SHIB price has done well in the past few days as the number of incinerated tokens jumped. Data shows that the SHIB burn rate jumped 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 jumped 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 negligible. 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 on the verge of a strong bullish breakout. Oscillators like the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bullish divergence and are 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.
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 jump 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.
READ MORE: Shiba Inu Price Prediction: SHIB Eyes a 150% Surge
