SHIB Burn Rate Skyrockets, Shiba Inu Ready to Continue Bullish Trend

The latest spike in the Shiba Inu (SHIB) token burn rate is a significant development in the crypto world. In the 24 hour period between Sunday and Monday, the burn rate increased by 499,416 percent. 

This increase marks a record in the token burn initiative and confirms the community's strong efforts in managing the total token supply. 

NewsBTC reported that, there were more than 264.20 million SHIB tokens destroyed on the same day. This spike in the SHIB burn rate can be attributed to multiple burn transactions, with a significant contribution from transactions by unidentified wallet addresses. 

This particular transaction, involving approximately 261.4 million SHIB tokens sent to dead wallets, accounted for approximately 98 percent of the total tokens burned during this period. This event marks a key moment in the SHIB burn initiative, highlighting its impact on the token supply.

Apart from this major transaction, another significant transaction caught the attention of the SHIB community. A wallet transferred approximately 21.52 million SHIB tokens to a dead wallet, further contributing to the reduction in total supply. 

These transactions are important because they reduce the number of SHIB tokens in circulation, creating a deflationary effect. 

To date, more than 410.66 trillion SHIB tokens have been burned, reducing the circulating supply to about 589.35 trillion tokens, according to data from CoinMarketCap. 

Amidst these developments, questions have arisen regarding the potential impact on the price of SHIB, especially the possibility of returning the value of US$0.00001. Cryptocurrency price movements are often analyzed using technical indicators.

For example, a decline below the 50 percent Fibonacci retracement level is usually considered an indication of weakening bullish momentum. Conversely, a bullish breakout of the upper trendline could signal the end of the current correction phase. 

It is important to note, the intraday trading volume of this memecoin was US$141.5 million, reflecting a decline of 29 percent. 

The Shiba Inu price correction is currently being researched via two descending trendlines that act as dynamic resistance and support for SHIB. 

Although the pullback to the 61.8 percent Fibonacci retracement level suggests some loss of bullish momentum, the formation of a bullish flag pattern suggests potential for a recovery.

According to a Coingape report, if this pattern proves accurate, SHIB price may surpass the upper trendline, indicating a continuation of the bullish trend. 

A daily close above this trendline could increase buying pressure, potentially pushing the price up by 40 percent towards the upper limit of the long-standing wedge pattern at US$0.00001058. 

The relevance of this chart pattern, which has influenced the SHIB price for more than 500 days, cannot be overstated. Therefore, a bullish breakout above this pattern is important for a trend change signal. 

When comparing the 3-month price behavior of Dogecoin (DOGE) and Shiba Inu (SHIB) during the October-November rally, both major memecoins showed significant growth.

However, SHIB experienced a notable pullback in the current crypto market downturn, marked by the formation of new lower lows and lower highs. In contrast, Dogecoin shows seemingly stronger potential for a strong rebound, if overall market sentiment improves.