While the Shiba Inu price remains in a bear market, one crucial catalyst may help it surge in the near term: its soaring burn rate. SHIB trades at $0.000014, just a few points above the year-to-date low $0.00001025. This article explains the bullish case as the SHIB burn rate and staking ratio rises.
Shiba Inu Price May Benefit From the Burn and Staking Rate
A token burn is a crucial process in which a crypto project reduces the amount of tokens in circulation by sending them into an inaccessible address. It helps to reduce the supply and boosting its sentiment among investors.
Shiba Inu price may benefit from the ongoing burn rate that has reduced the number of SHIB tokens in circulation. Data show that the network has burned over 420 trillion tokens since its inception, and the rate is accelerating. The daily burn rate rose by 14.76 million on Monday, leaving those in circulation at 584 trillion.
Further, on-chain data shows that over 15,000 SHIB Army members have staked their xSHIB tokens. Over 4.83 trillion currently worth over $67 million, have been staked. That is a sign that these users anticipate the Shiba Inu price to continue rising over time.
Shiba Inu burns its tokens in a number of ways. The most common one is where holders move their tokens to a dead address. Another one is where fees generated from its ecosystem like Shibarium is changed from BONE to SHIB and then incinerated.
SHIB Can Soar 150% if Key Support Holds
A recent CoinGape article estimated that the value of SHIB would eventually surge 17x in the long term. This article cited a chart forming a triangle pattern that hinted it was in a strong buy zone.
The daily chart below adds to the optimism that the Shiba Inu price will eventually rocket higher, potentially by 150% from the current level.
This chart reveals that the coin has formed a giant double bottom pattern at $0.00001080, its lowest level in August last year and this month. It is a giant one because its neckline is at $0.000033. This price signals a near 150% surge from the current level.
There will be several key SHIB price targets to watch out before the target is reached. The first one is at $0.00001565, the neckline of the smaller double-bottom pattern that has formed this month.
After this, the bullish Shiba Inu forecast will be confirmed when the coin rises above $0.000022, the 50% Fibonacci Retracement level. The outlook will be canceled when the coin crashes below the double-bottom point at $0.00001080. A drop below this level will cancel the bullish view.
The post 410 Trillion SHIB Burned and 4.8T Staked: Can Shiba Inu Price Surge 150%? appeared first on CoinGape.
