Can Shiba Inu price really soar to $1 as burn rate jumps?

Shiba Inu price continued to consolidate this weekend, although some cryptocurrency analysts remained optimistic.

Shiba Inu (SHIB), the second-largest meme coin in crypto, was trading at $0.00002812, up 163% from its August low.

Some analysts predict that the Shiba Inu is on the verge of a strong upward trend in the coming weeks. In post X, SHIB Mortal predicted that the cryptocurrency will rise to $1 in this bull run.

Similarly, Daink, a popular trader with over 88k followers, expects the cryptocurrency to show a strong uptrend. He touched on strong technicals on the monthly chart.

One of the most cited bullish catalysts for Shiba Inu price is the ongoing token burn. According to ShibBurn, the 24-hour burn rate increased by 425% to 71,122,860 coins. These burns brought the total number of burnt Shiba Inu coins to over 410 trillion. The number of those in circulation is over 584 trillion.

Token burning is a situation where coins are removed from circulation by transferring them to an inaccessible address. In Shiba Inu’s case, some of these tokens come from its ecosystem such as Shibarium and ShibaSwap.

Shibarium is a relatively new layer-2 network that has processed over 645 million transactions. It has over 2.01 million addresses and the average block time is 20.9 seconds. A portion of the BONE fees made in the Shibarium are converted into SHIB and burned.

Another potential catalyst for the Shiba Inu price is investors moving their tokens off exchanges. Total tokens on exchanges decreased by 1.73% to 258.19 trillion in the last seven days.

Shiba Inu price analysis SHIB price chart | Source: crypto.news

The daily chart shows that SHIB price is in a slow uptrend after falling as low as $0.00001095 in August. On November 4, a very bullish golden cross pattern was formed when the 200-day and 50-day moving averages crossed each other.

He created the cup and handle pattern, which is a popular continuation sign. Recently, it has been reinforced by forming the stem part of the pattern. This consolidation occurred after moving to the upper side of the cup and the weak, stop and reversal of the Murrey Math Lines.

Therefore, there is a possibility that the Shiba Inu price may show an upward trend. The depth of the container is 67%. Therefore, if we measure this distance from the top of the cup, we can estimate that the price will increase to $0.00005470.

While it is possible for the Shiba Inu to rise to $1, the scenario is unlikely. For this to happen, it needs to increase by 3.02 million percent.

The Shiba Inu was created in 2020 by an anonymous person or group using the pseudonym Ryoshi, similar to the mysterious origins of Bitcoin creator Satoshi Nakamoto.