SHIB Turns 5: Burn Rate Explodes, 70% Price Surge Ahead?

Key Notes

• SHIB's burn rate surged 2,200% in 24 hours, hinting at a potential supply shock.
• A bullish cup-and-handle pattern with a falling wedge handle signals a 70% breakout possibility.
• Momentum indicators show SHIB is nearing oversold levels, setting the stage for a reversal.

As Shiba Inu

SHIB $0.000012

24h volatility: 7.7%

Market cap: $7.14 B

Vol. 24h: $272.74 M

marks its fifth anniversary since launch in August 2020, the meme coin is showing signs of a potential breakout. Analysis suggests that the meme coin may be preparing for a bullish reversal, eyeing a 70% upside move.

Shiba Inu Burn Rate Skyrockets

In the past 24 hours, the SHIB burn rate has exploded by over 2,200%, with more than 3,097,114 tokens permanently removed from circulation. This brings the total number of SHIB tokens burned to a staggering 410.75 trillion, as per the data from Shibburn.

Such a rapid acceleration in burn activity has historically preceded price appreciation as for the same demand, the amount of SHIB available is lesser.

Shiba Inu is currently trading at $0.00001204, nearly 8% down in the past day and struggling to break above the recent high of $0.00001316.

The Ethereum Ecosystem Narrative

Market analyst Crypto Patel recently suggested that the next major crypto rally will likely emerge from within the Ethereum

ETH $3 623

24h volatility: 6.1%

Market cap: $437.41 B

Vol. 24h: $38.95 B

ecosystem. In his view, Shiba Inu, alongside projects like PENDLE

PENDLE $3.95

24h volatility: 13.3%

Market cap: $654.75 M

Vol. 24h: $129.74 M

and PYTH

PYTH $0.11

24h volatility: 10.4%

Market cap: $644.89 M

Vol. 24h: $37.29 M

, is poised to lead this movement.

Given SHIB’s deep integration with Ethereum, the meme coin could substantially benefit from the ETH community as well as its own massive following.

SHIB Price Analysis: 70% Price Surge

As per the chart below, SHIB’s daily chart reveals the completion of a classic cup-and-handle formation, a bullish continuation pattern.

While the price was initially rejected at the upper rim near $0.0000175, the handle has formed as a falling wedge, which is usually considered a bullish reversal signal.

Related article: Shiba Inu Price Can Still Soar 500% According to Top AnalystThe wedge is currently compressing near a strong support level at $0.0000100, and a breakout above the upper boundary of the wedge could spark a substantial rally.

Shiba Inu Cup-and-Handle Formation | Source: TradingView

On the other hand, the MACD histogram is approaching a bullish crossover with the RSI cooling to 36.73. The Chaikin Money Flow (CMF) reading at zero implies neutral capital flows and the BoP shows signs of waning seller dominance in the short term.

If SHIB can decisively break above the immediate resistance zone between $0.0000131 and $0.0000140, the next targets lie at $0.0000175 and $0.0000200.

A push to the $0.0000220 level would confirm a full breakout from the cup-and-handle pattern, marking a potential 70% move from current prices, making SHIB one of the best meme coins to buy.

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