Is there more withdrawal or recovery next?

TL;DR

A significant increase in Shiba Inu’s burn rate and increased transactions on Shibarium hint at a possible upward movement in the price of the meme coin. One analyst observes a bullish flag pattern, suggesting that SHIB could gain as much as 90% if it removes $0.00001884.

The next potential direction for SHIB

The cryptocurrency sector has witnessed a substantial pullback in the past 24 hours, with its global market capitalization dropping by more than $100 billion. Bitcoin (BTC), which traded above $72,500 on October 31, is now worth roughly $69,000, while Ethereum (ETH) fell below $2.5K.

Popular meme coin Shiba Inu (SHIB) is also among the big losers. Its price fell 7% on a daily basis, while its market capitalization returned to $10 billion.

SHIB Price, Source: CoinGecko

The current situation in the realm of meme coins is not looking great, with Dogecoin (DOGE), dogwifhat (WIF) and many others crashing in the double digits. This negative trend could put further downward pressure on SHIB’s price in the near term.

However, two important factors suggest that the asset’s valuation could head north soon. The first is the SHIB burn rate, which has skyrocketed by 252,900% in the last 24 hours, resulting in over 5.6 billion tokens sent to a null address. Calculated at current rates, the destroyed storage equates to approximately $100,000.

It is worth noting that the cat meme coin project Shiro Neko burned almost 100% of the mentioned amount. The Shiba Inu team acknowledged the initiative and described it as “a historic moment for our community.”

Burning SHIB tokens reduces the circulating supply of meme currency. This leads to scarcity and could increase its price (assuming demand does not decrease).

The second bullish element is the resurgence of Shiba Inu’s layer 2 scaling solution: Shibarium. The data shows that transactions processed in the protocol on October 31 reached almost 4 million (a 130% increase from the figure seen the previous day). For more updates on the ecosystem, check out our Shibarium News page.

This revival means a strong commitment to the network, which can positively influence SHIB’s price through increased utility and improved market sentiment.

90% incoming rally?

One industry participant focusing on SHIB’s future moves is user X Clifton Fx. The analyst noted the appearance of a “bullish flag formation” on the asset’s three-day price chart, speculating that the valuation could shoot up nearly 90% if it recovers to $0.00001884.

$SHIB (Update)

Bullish Flag Formation on a 3D Time Frame…

In the event of a breakout to the upside, we may see an 80-90% bullish rally.#SHIBUSDT #SHIB #Crypto pic.twitter.com/aELvv9eNc0

— Clifton Fx (@clifton_ideas) October 31, 2024

SHIB is currently trading around $0.0000173 (according to CoinGecko data), which means it needs to advance 9% to reach the represented target.

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