Shiba Inu Price Analysis

Shiba Inu’s (SHIB) price has experienced a substantial decline after reaching a peak of $0.0000329 in December of last year.

Price Drop Details

The price has plummeted by 61%, hitting its lowest point since September 5, 2024. This downward trend aligns with the broader struggles in the crypto market, particularly among meme coins like Dogecoin (DOGE), Pepe (PEPE), and Floki (FLOKI), which have all seen double-digit losses.

Potential Catalysts for Price Increase

Shiba Inu has three possible factors that could drive its price higher in the near future:

1. Increased Burn Rate: Recently, the daily burn rate surged by 3,253% to 29.3 million on March 8. Since the project’s inception, over 410 trillion coins have been burned, resulting in a circulating supply of 584 trillion. Token burns involve sending cryptocurrencies to an inaccessible address.

2. MVRV Indicator Signals Bargain: The Market Value to Realized Value (MVRV) indicator, according to Santiment data, has fallen to -2.143, its lowest since August last year, suggesting a potential buying opportunity as the MVRV indicator previously triggered a 215% increase during similar low levels.

3. Technical Analysis: The SHIB price has reached a significant support level that it hasn’t breached below four times since last July, indicating a reluctance among bears to short below this point. Additionally, indicators such as the accumulation and distribution indicator show rising trends, while the Relative Strength Index and MACD depict a bullish divergence.

Shiba Inu is currently forming a falling wedge pattern, suggesting a strong bullish breakout might be imminent. Traders are targeting a price range of $0.00003325, representing a 155% increase from its current price.

Conclusion

The Shiba Inu market is exhibiting signs of potential recovery through increased demand, technical indicators, and a favorable burn rate.

For further insights, see the report on Bitcoin’s recent price dip following the US BTC reserve launch, discussed by Scott Melker on the Wolf of All Streets podcast.