Shiba Inu price could rise by 60% as burn rate increases by 3,400%

Token burns are used to create value for a crypto project by reducing the number of coins in circulation. In the case of Shiba Inu, these burned tokens come from fees from projects like Shibarium and ShibaSwap.

Shibarium is the network’s Layer 2 network, while ShibaSwap is a decentralized exchange where users exchange tokens. Data shows that ShibaSwap has over $26 million in assets, while Shibarium has processed nearly 600 million transactions. The BONE tokens collected on these chains are converted into SHIB and burned.

Shiba Inu price could rise by 60%

The technicals suggest a possible SHIB price increase in the near future. A golden cross pattern has formed as the 50-day and 200-day exponential moving averages (EMA) reversed 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 an uptrend continuation. The recent consolidation is part of the handle portion of this pattern.

Its MACD indicator has risen above the zero line while the MVRV indicator has risen to 3.2. Therefore, the coin is likely to rally and retest the previous yearly high of $0.000045, which is about 63% above current levels. A decline below the support at $0.0000022 will invalidate the bullish view.