Can Shiba Inu price really soar to $1 as burn rate jumps?

Shiba Inu price continued to consolidate this weekend even as some cryptocurrency analysts remained optimistic.

Shiba Inu (SHIB), the second-biggest meme coin in crypto, was trading at $0.00002812, up by 163% from its lowest level in August.

Some analysts predict that Shiba Inu was on the cusp of a strong bullish breakout in the coming weeks. In an X post, SHIB Mortal, predicted that the coin would jump to $1 in this bull run.

Similarly, Daink, a popular trader with over 88k followers, expects the coin to have a strong bullish breakout. He cited its strong technicals on the monthly chart.

One of the most cited bullish catalysts for Shiba Inu price is its ongoing token burn. According to ShibBurn, the 24-hour burn rate rose by 425% to 71,122,860 coins. These burns brought the total number of burnt Shiba Inu coins to over 410 trillion. Those in circulation are over 584 trillion.

You might also like: 4 charged cryptos with potential to invest $1k in and make $100k in no time

A token burn is a situation where coins are moved from circulation by being transferred to an inaccessible address. In Shiba Inu’s case, some of these tokens comes from its ecosystem like Shibarium and ShibaSwap.

Shibarium is a relatively new layer-2 network that has handled over 645 million in transactions. It has over 2.01 million addresses, and its average block time is 20.9 seconds. Some of the BONE fees made in Shibarium are converted to SHIB and burnt.

Another potential catalyst for the Shiba Inu price is that investors are moving their tokens from exchanges. The total tokens on exchanges has dropped by 1.73% in the last seven days to 258.19 trillion.

Shiba Inu price analysis

The daily chart shows that the SHIB price has been in a slow uptrend after bottoming at $0.00001095 in August. It formed the highly bullish golden cross pattern on Nov. 4 as the 200-day and 50-day moving averages crossed each other.

It has formed a cup and handle pattern, a popular continuation sign. Most recently, it has consolidated as it forms the handle section of the pattern. This consolidation happened after it moved to the upper side of the cup and the weak, stop & reverse point of the Murrey Math Lines.

Therefore, there is a likelihood that the Shiba Inu price will have a bullish breakout. The depth of the cup is 67%. Therefore, if we measure that distance from the upper side of the cup, we can estimate that the price will rise to $0.00005470.

While it is possible for Shiba Inu to jump to $1, the scenario is improbable. For that to happen, it needs to rise 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 — similar to the mysterious origins of Bitcoin’s creator, Satoshi Nakamoto.

Read more: Trump’s World Liberty Financial bags $55M in ETH holding; sparks positivity for SOL and LNEX