- Shiba Inu’s burn rate has surged by 62,000% in the past 24 hours, making analysts optimistic of a SHIB price rally ahead.
- Additionally, analysts said macroeconomic factors, such as potential Federal Reserve rate cuts, could boost SHIB and other cryptocurrencies.
Following the peak of 2024, Shiba Inu’s market cap has significantly crashed by $12 billion, all the way from $20 billion to now at $7.55 billion. This massive retreat comes as Bitcoin and all other altcoins have seen major price revisions over the past few months. Also, concerns surrounding a US recession have induced further selling pressure on Shiba Inu, amid major sell off in the broader meme coin sector. However, crypto market analysts believe that the recent correction in Shiba Inu price might be nearing its conclusion.
Shiba Inu Price Recovery Soon Ahead?
Several market analysts believe that the decline in the Shiba Inu price could be nearing its end very soon. As per the recent data from ShibBurn, there’s been a significant uptick in SHIB coin burns, with the burn rate surging by a massive 62,000% in the last 24 hours. This spike was majorly due to a single user transferring 460 million SHIB coins to a dead wallet. Since the token’s launch, over 410 trillion SHIB coins have been burned, reducing the circulating supply to approximately 584 trillion.
Another reason behind the Shiba Inu price recovery could be that it could benefit from the broader macroeconomic trends. Historically, both the stock and crypto markets have corrected during periods of macro uncertainty. However, these corrections are often followed by sharp bounce backs. For instance, the markets plummeted when COVID-19 was declared a pandemic but staged a robust recovery soon after.
The Federal Reserve’s upcoming interest rate decision could act as a catalyst for SHIB and other cryptocurrencies. With recession concerns mounting, the Fed might signal further rate cuts this year. Historically, cryptocurrencies, including Bitcoin and Shiba Inu, have performed well during periods of monetary easing.
Shiba Inu’s ecosystem continues to grow through targeted initiatives designed to boost its utility. On February 21, Shytoshi Kusama announced significant upgrades to ShibaSwap, the project’s decentralized exchange (DEX), marking another step forward in its development, as highlighted in our previous report.
Lucie, the marketing lead for the Shiba Inu team, recently unveiled key details about the newly launched SHIB OS. Describing it as a foundational innovation, Lucie emphasized its pivotal role in securing the future of decentralized governance within the Shiba Inu ecosystem, as noted earlier.
What Does the SHIB Technical Chart Show?
Despite the heavy uncertainty, the Shiba Inu team remains confident of the coin’s future growth, as mentioned in our previous report. Technical indicators suggest that Shiba Inu could be heading for a strong bullish breakout this year as SHIB has been forming a falling wedge pattern. Amid this pattern, the two descending and converging trendlines have converged at around $0.00001260, while coinciding with the lowest swings of July, August, and September last year.
The Relative Strength Index (RSI) for SHIB has broken above the descending trendline that has capped its highest swings since December. Similarly, the Percentage Price Oscillator (PPO) has confirmed a bullish crossover, further signaling potential upward momentum.
With these technical indicators aligning, Shiba Inu’s price is poised for a strong breakout. The next key psychological target to watch is $0.000020, representing a potential 60% gain from current levels.
