Shiba Inu price looks prime for a parabolic rally amid a looming supply crunch and a recovery across the meme coin sector. In the last seven days, the total meme coin market cap has gained nearly 10% from $48 billion to $52 billion at press time. Amid these bullish tailwinds, can SHIB price reach the highly anticipated psychological level of $0.001?
Shiba Inu Price in Focus Amid Mysterious 1B SHIB Burn
The Shiba Inu burn rate skyrocketed recently after an unknown user burned 1,000,000,000 SHIB tokens. Data from Shibburn shows that this user sent these tokens to the burn address in a single transaction. Yesterday, another address also sent 23M SHIB to the burn address.
One of the main factors contributing to the high burn rate is a spike in activity on the Shibarium network. DeFi tracking tool DeFiLlama shows that in just one week, Shibarium’s TVL has increased by over $1M and recently reached its highest level since late January.
As Shibarium records an uptick in activity, the burn rate will continue to surge and bring down SHIB’s supply. This will bode well for Shiba Inu price.
SHIB Supply Crunch Looms
Besides the token burns, Shiba Inu supply on exchanges has also reached its lowest level in four years. According to Santiment, SHIB’s exchange experienced a sharp decline earlier this year, and only 100.42 trillion tokens, valued at around $1.3 billion are available on exchanges.
The amount of SHIB held on exchanges is only 16% of the meme coin’s circulating supply of 589 trillion tokens. This decline indicates that many SHIB holders are not holding their tokens on exchanges, which highlights a lack of intent to sell.
As this supply continues to fall, it might cause a supply crunch where demand outpaces the supply. This could spark a parabolic rally for Shiba Inu price.
Can Shiba Inu Reach $0.001?
The $0.001 price target is realistic for Shiba Inu as that would give it a $589B market cap. One of the factors that could aid such a rally is a gradual increase in the SHIB burn rate.
Additionally, increased activity on Shibarium could sustain a long-term uptrend. Early Bitcoin advocate Davinci Jeremie previously stated that Shibarium will unlock SHIB’s potential.
The possible launch of a spot SHIB ETF as highlighted by SHIB marketing executive LUCIE could also drive a price rally to $0.001. If Shiba Inu outperforms the rest of the crypto market and attains this price target, it will not only be the largest meme coin but also the largest altcoin.
Shiba Inu Price Analysis
Shiba Inu price today trades at $0.0000135 with a 2.5% gain in 24 hours, The meme coin is on the verge of a breakout after breaking above the upper trendline of a descending parallel channel, indicating that bears are losing control as buying pressure rises.
The rising RSI line also supports this bullish Shiba Inu price prediction. This indicator stands at 51, which is a neutral level. However, the making of higher lows shows that selling pressure is easing.
Shiba Inu faces two key resistance levels which, if breached, will confirm a bullish reversal. One of these levels is the 50-day SMA of $0.0000141. If the meme coin flips this resistance, it could trigger a 36% surge to the 200-day SMA of $0.000019.
In summary, Shiba Inu price is likely to break crucial resistance at the 50-day SMA, which will confirm a reversal from bearish to bullish trends. The increasing burn rate caused by an uptick in activity on Shibarium as well as the falling supply on exchange could trigger a supply crunch. This could precede a parabolic rally for SHIB.
The post Shiba Inu Price Eyes $0.001 Amid 1B Mysterious SHIB Burn and Supply Crunch Fears appeared first on CoinGape.
