- Shiba Inu has been bearish most of the year but recently broke through a multi-month resistance.
- This break and close above $0.00001 could see SHIB’s price rally to August’s highs of $0.00001152 or even $0.00001529.
- The upcoming SHIB burning mechanism on SHIB is expected to significantly boost the price by reducing the circulating supply.
- There have also been recent spikes in burn rates and Open Interest in Shiba Inu.
SHIB has been bearish for most of 2023.
The memecoin started the year with a 102% rally straight up from $0.0000078 to as high as $0.000015.
However, things soon went south when a price decline brought SHIB into a retest of $0.0000054. Shiba Inu, because of this price decline, has only gained about 7% throughout the entire year.
In recent developments, the memecoin has broken through a multi-month resistance to the upside and is poised for an incoming rally.
Shiba Inu’s Recent Breakout
SHIB’s price action over most of the year has formed a descending trendline, as highlighted by analyst, Jake Wujastyk in a recent tweet.
Wujastyk in the tweet, featured the chart above and suggested that the recent Shiba Inu break above $0.00001 might be the catalyst for a strong bullish movement upwards.
According to data from TradingView, SHIB has spent the last 6 months trying to break and stay above $0.00001, since breaking below in early May.
The cryptocurrency successfully broke above this price level in August but only managed to hit $0.00001135 before being caught up by the bears.
This time around, however, SHIB is attempting another break above $0.0001.
And judging by the general bullishness of the crypto market, we can expect the memecoin to have all the backing it needs from here.
If a break and close above this price level occurs, we may just see a SHIB price rally to August’s $0.00001152, $0.00001297 or even $0.00001529 if the bulls show enough strength.
Shibarium Will Soon Begin To ‘Burn’ SHIB Tokens
To anyone wondering about the major ways that Shibarium can boost Shiba Inu’s price, here’s how:
Shibarium has recently introduced a new feature for burning SHIB.
According to a recent announcement by the Shiba Inu development team, Shibarium will now be burning SHIB tokens by sending an impressive 70% of the fees collected on the network to the Shiba Inu burn address.
In detail, these base fees collected by the network will be automatically converted into SHIB by a smart contract once they hit $25,000.
After conversion, Shibarium will simply transfer these tokens to the SHIB burn address, as a way to destroy them and reduce the SHIB supply.
On the other hand, the remaining 30% will then be used to maintain the network and reward validators.
Because of this, Shibarium is now being referred to as a “24/7 SHIB burning factory”, painting a very bullish future for SHIB.
SHIB Burn Rates, Other Metrics Spike
According to a recent update tweet from Shib Burn, the SHIB burn rate tracker, the burn rate is a bit sluggish today.
Shibburn notes that only about 1,144,897 SHIB has been burned over the last 24 hours.
This may seem impressive, but it represents about a -99.99% dip from the previous day.
Over the last 7 Days, however, a whopping 8,569,532,892 SHIB have been burned, representing an impressive rally of about 2515.28%.
One of the metrics that promises a Shiba Inu rally the most, is the Open Interest.
According to Coinglass and as shown above, Shiba Inu’s Open interest has been on the rise as of late.
At the time of writing, this metric currently sits at about $27.1 million and is the highest that SHIB has seen since mid-August this year, when it first broke above $0.00001.
To conclude things, all signs lead to an incoming SHIB pump, as well as an assurance that Shiba Inu might end the year on good terms.
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