Shiba Inu price has been lagging behind newer meme coins such as FARTCOIN and PEPE, which have registered notable gains in the last month. However, a recent spike in the SHIB burn rate and active address count has sparked speculation over whether the second-largest meme coin can compete with these new coins.
SHIB value today is flashing bearish signals with a 2% decline to trade at $0.000013 at press time. The dips come after the broader crypto market retreated after Bitcoin (BTC) slipped below $96,000.
Shiba Inu Price in Focus as Burn Rate Spikes 22,000%
A rally is brewing for the Shiba Inu price after a drastic surge in the burn rate. Data from Shibburn shows that in the last 24 hours, more than 27 million tokens have been removed from the circulating supply, with a single address burning more than 15 million SHIB.
The surging burn rate coincides with a surge in user activity after the active address count soared to the highest level in nearly two months. Data from Santiment shows that the number of active addresses in the last seven days has reached 23,014, which is the highest since late February.
As network usage grows, it triggers a surge in the burn rate as depicted in the above data, and this makes a bullish case for the Shiba Inu price prediction.
Can SHIB Compete with New Meme Coins?
In recent weeks, capital has been rotating from older meme coins to newer ones as traders chase quick profits. This capital rotation follows weak Shiba Inu price performance, considering that it has gained by only 9% in the last month. In contrast, FARTCOIN has soared by 196% during the same period, while PEPE is up by 23%.
However, given that old meme coins such as Dogecoin and SHIB are less volatile, traders might shift away from these newer coins if they show signs of a weakening trend. Moreover, analysts have also predicted an upcoming SHIB rally.
Hence, if the burn rate and active address count continue to rise, SHIB has the potential to compete against new meme coins. If these fundamentals weaken, then coins such as FARTCOIN will continue outperforming Shiba Inu.
Shiba Inu Technical Analysis
The price of Shiba Inu is breaking out of a descending parallel channel on the weekly chart, suggesting that the bearish momentum is growing weak, which may unlock an upward trend. However, SHIB still needs to overcome resistance at $0.0000173, at which point it will have created a higher high and confirm a shift trend from bearish to bullish.
However, this upswing will only be confirmed if the top meme coin can attract buy-side activity that will push the RSI above 50. Doing so will confirm the shift in market structure, and this will trigger the uptrend towards key resistance levels.
If the above bullish thesis fails and SHIB fails to make a decisive close above the descending trendline, it may spark a decline to the support level of $0.108. However, as long as the active address count and SHIB burn rate remain high, the meme token has the potential to sustain gains.
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