Shiba Inu price and burn rate are falling: time to sell?

The Shiba Inu price experienced a sharp comeback on Monday, December 9, as Bitcoin and other altcoins pulled back.

Shiba Inu (SHIB) fell nearly 7% to $0.000030; It is much lower than this month’s high of $0.000033. Other popular meme coins also experienced declines, including Popcat (POPCAT), Peanut the Squirrel, and Dogwifhat (WIF).

The Shiba Inu’s withdrawal coincided with a significant decrease in burn rate. Data from ShibBurn showed that the burn rate decreased by approximately 90% to 413,412 SHIB tokens. This marked a sharp decline on Friday after a wallet burned 250 million SHIB tokens in a single transaction.

Since its founding, the Shiba Inu has burned over 410 trillion SHIB coins, leaving 589 trillion coins in circulation. This burning process is expected to continue over the long term, which could make the remaining coins more valuable.

Meanwhile, data from the Shiba Inu’s ecosystem points to positive growth. Shibarium, a Layer 2 network, has processed more than 623 million transactions since its inception. While the total number of addresses recently exceeded 2 million, total BONE transfers increased to approximately 2 million.

ShibaSwap, a decentralized exchange within the ecosystem, has achieved a total locked value of over $28 million. The number of transactions on the network increased and annual fees rose to over $3.2 million.

Shiba Inu price rise has more room to run SHIB price chart | Source: crypto.news

The daily chart shows SHIB price reversing after rising to the key resistance level of $0.00003280, the highest since March 28.

Shiba Inu price formed a golden cross formation with the intersection of the 200-day and 50-day Weighted Moving Averages. The coin appears to form a cup and handle pattern with approximately 67% depth.

By measuring 67% from $0.00003280, the target was set at $0.00005478. To confirm the move towards this target, the coin will need to surpass its new year-to-date high of $0.000045.

The bullish view will be invalidated if SHIB’s price falls below the 50-week moving average of $0.000026.