SHIB Burn Rate Up 12,000% – Is 18% Shiba Inu Price Rally Imminent?

Shiba Inu (SHIB) is still defending a bullish technical structure despite falling by 3.18% today, June 27, to trade at $0.0000112. Despite intense volatility across the market, Shiba Inu price has defended the psychological support level of $0.00001, with bulls now eyeing an 18% jump to a monthly high. With the SHIB burn rate up by a staggering 12,000%, is this rally imminent?

Shiba Inu Price Eyes 18% Rally Amid Bull Flag Pattern

SHIB price is eyeing an 18% rally to the upside. After SHIB ended a 7-week downtrend, this rally is now likely to occur due to the formation of a bull flag pattern on the four-hour timeframe. When this pattern appears, it usually suggests that the uptrend has only undergone a brief pause before the next bullish leg commences to push it higher.

In this bullish technical structure, the target price for Shiba Inu price if this pattern holds is $0.0000138, which is 18% above the current price. If this happens, SHIB price will be trading at its highest level in one month.

However, there is a major caveat to such a rally happening, which is the upper boundary resistance of the bull flag at $0.000019. The top meme coin will have to overcome this resistance level first to confirm a strong trend.

The 50-day SMA of $0.0000113 is also a major hurdle to the upward trend, as a close above it will confirm that the short-term momentum is bullish. The 20-day SMA level of $0.00001252 is also a key resistance to watch, with past data showing that a decisive close above this level has often preceded gains.

However, the above bullish Shiba Inu price forecast faces a challenge due to the RSI indicator, which stands at 44. This reading suggests that bearish momentum remains prevalent, posing a risk to the SHIB price and the confirmation of the bull flag.

SHIB Burn Rate Soars 12,000%

Data from Shibburn shows that the SHIB burn rate has increased by 12,833% in the last 24 hours, with over 13 million tokens being removed from the circulating supply. This spike has brought the total number of SHIB tokens burned in the last seven days to 75 million.

The reduced supply is bullish for the Shiba Inu price. Moreover, this spike also coincides with a 27% increase in SHIB’s daily active addresses that have gone from 2,777 to 3,534 within 24 hours, per Santiment data.

The surging burn rate and high network usage suggest that more traders and users are on the Shiba Inu network. If this continues, it may bode well for the Shiba Inu price performance and pave the way for a recovery for this meme token.

Lastly, the Shibarium TVL has also recorded significant growth in the last few days, with this metric increasing from $1.77 million to $1.96 million at press time, which could be causing the spike in burn rate and address count.