Shiba Inu price continued to consolidate over the weekend even as some cryptocurrency analysts remained optimistic.
Shiba Inu (SHIB), the second largest crypto coin, was trading at $0.00002812, up 163% from its August low.
Some analysts predicted that Shiba Inu was poised for a strong bullish breakout in the coming weeks. In an article X, SHIB Mortal predicted that the coin would rise to $1 during this bull run.
Similarly, Daink, a popular trader with over 88,000 subscribers, expects the coin to see a strong bullish breakout. He cited its strong technical data on the monthly chart.
One of the most cited bullish catalysts for the Shiba Inu price is its ongoing token burn. According to ShibBurn, the 24-hour burn rate increased by 425% to 71,122,860 pieces. These fires brought the total number of Shiba Inu parts burned to over 410 trillion. Those in circulation amount to more than 584,000 billion.
A token burn is a situation in which coins are removed from circulation by being transferred to an inaccessible address. In the case of Shiba Inu, some of these tokens come from its ecosystem like 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 its average block time is 20.9 seconds. Some of the BONE charges made in Shibarium are converted to SHIB and burned.
Another potential catalyst for the Shiba Inu price is investors withdrawing their tokens from exchanges. The total number of tokens on exchanges fell by 1.73% over the past seven days to 258.19 trillion.
Shiba Inu Price Analysis
The daily chart shows that SHIB price has been in a slow upward trend after bottoming at $0.00001095 in August. It formed the very bullish golden cross pattern on November 4 as the 200 and 50 day moving averages crossed.
It formed a cup and handle pattern, a popular continuation sign. More recently it has become more consolidated as it forms the handle section of the pattern. This consolidation occurred after it moved to the upper part of the cup and the weak point, stopping and reversing the Murrey mathematical lines.
Therefore, it is likely that the Shiba Inu price will experience a bullish breakout. The depth of the cut is 67%. Therefore, if we measure this distance from the top of the cup, we can estimate that the price will reach $0.00005470.
If it is possible for the Shiba Inu to go to $1, the scenario is unlikely. For that to happen, it needs to increase by 3.02 million percent.
Shiba Inu was created in 2020 by an anonymous individual or group using the pseudonym Ryoshi, whose identity remains unknown – as do the mysterious origins of Bitcoin’s creator, Satoshi Nakamoto.
