The Shiba Inu price has been moving sideways over the past few weeks as the burn rate continues to gain momentum. SHIB, the second-largest meme coin, was trading at $0.00001250 on Monday morning, up more than 20% from its lowest point of the year.
What comes next for the Shiba Inu coin after it forms a giant double-bottom pattern, with its burn rate surging and whale holdings falling?
SHIB Coin Whale Drops, Burn Rate Rises
Recent data shows that the Shiba Inu whale volume has continued to decline this year. Santiment data reveals that the supply held by whales has declined in the past few weeks. This supply has decreased from a high of 743 trillion tokens in January to its current level of 735 trillion.
More data shows that the supply held by top addresses dropped to 618 trillion, down from this month’s high of 619 trillion. That’s a sign that many whales are selling their tokens as the token continues to decline.
On the positive side, the number of Shiba Inu tokens in circulation has continued to fall due to the growing burn rate. The daily burn rate rose by over 65% on Monday to 17.72 million, bringing the circulating supply to 584 trillion tokens.
READ MORE: ‘Worse Than 2008’ – Cardano, Pepe, Hedera, XRP on Edge as Experts Sound Financial Crisis Alarm
Shiba Inu Price Technical Analysis
Another positive aspect is that the Shiba Inu coin price has formed a giant double-bottom pattern at $0.00001080. This pattern comprises two bottoms and a neckline. In this case, the double-bottom level is $0.00001080, while the neckline is at $0.00003340, which is up by over 165% from the current level.
Another bullish catalyst is that the Shiba Inu price has formed a falling wedge pattern. This pattern consists of two falling and converging trendlines, with a bullish breakout occurring at their point of convergence.
Therefore, as things stand, there is a likelihood that the SHIB price will have a strong bullish breakout in the coming days. We can confirm more gains if the price jumps above the key resistance point at $0.00001560, the highest level this month.
The bullish view will become invalid if the Shiba Inu price drops below the lower boundary of the double bottom at $0.00001080. If this happens, the next point to watch will be the psychological point at $0.000010.
READ MORE: Shiba Inu Price Prediction: SHIB Prepares for a Big Move
