Can Shiba Inu (SHIB) Price Surge 150% Amidst Increased Burn Rate?
Shiba Inu (SHIB) has declined significantly since December, experiencing a 61% drop. However, a recent surge in its burn rate by over 3,200% and a favorable MVRV Z score could signal a recovery. Technical indicators suggest potential bullish momentum, with a target price of $0.00003325, representing a 155% rise from current levels.
Shiba Inu (SHIB) has experienced significant downward momentum since reaching a peak of $0.0000329 in December. Presently, SHIB has declined by 61%, marking its lowest value since September 5, 2024. This decline aligns with the broader struggles within the cryptocurrency market, particularly impacting meme coins like Dogecoin (DOGE) and Floki (FLOKI), which have also seen double-digit losses.
Despite current challenges, Shiba Inu exhibits three potential catalysts for price recovery. Firstly, its burn rate has surged, with a notable increase of 3,253% on March 8, resulting in 29.3 million SHIB tokens being burned daily. Since inception, over 410 trillion coins have been incinerated, leaving a circulating supply of 584 trillion.
Secondly, Shiba Inu has reached a perceived undervaluation, as indicated by the Market Value to Realized Value (MVRV) Z score. The MVRV-Z score recently plummeted to -2.143, its lowest since August, down from a peak of 0.35 in December. Historically, similar dips have led to substantial price surges, such as the previous increase of 215% to the December highs.
From a technical standpoint, SHIB has found support at a crucial level, having bounced back from it multiple times since July of last year. This indicates that market participants may be hesitant to push prices lower. Furthermore, the accumulation and distribution indicator is rising, signifying investor interest. Bullish signals are also present in the Relative Strength Index and Moving Average Convergence/Divergence (MACD) indicators, which are indicating bullish divergence.
Lastly, SHIB has formed a falling wedge pattern, suggesting an impending upward breakout. Should this occur, the price could aim for the December high of $0.00003325, representing a 155% increase from its current level.
In summary, Shiba Inu’s price could potentially surge as high as 150% due to an exceptional increase in its burn rate, coupled with a favorable market valuation indicator and encouraging technical signals. The current market dynamics and recent price behavior suggest a possible bullish reversal as investors may begin to capitalize on the current dip, reinforcing optimistic sentiments for SHIB’s price trajectory in the near future.
Original Source: crypto.news
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