Key Insights:
- A popular crypto analyst hints that the Shiba Inu price may surge soon.
- The analyst cited the ongoing consolidation at a crucial support level.
- The surging SHIB burn rate may contribute to the surge.
Shiba Inu price has been a top laggard in the crypto market this year as demand from traders and investors waned. SHIB token was trading at $0.000012 today, August 20, down by 65% from its highest point in November last year and 75% below the 2024 high.
Crypto Analysts See Shiba Inu Price Rising
The sentiment surrounding Shiba Inu price has waned in the past few months, as evidenced by its low volume in the spot and futures market.
Still, some analysts believe that the token jas more upside in the coming weeks, citing the ongoing horizontal movement.
In a post on X, one analyst noted that the coin was trading at a crucial support level and that the longer it stays there, the stronger the bullish breakout will be.
History is on Shiba Inu side as evidenced by the XRP price, which is shown below. This chart shows that the XRP price remained inside a narrow channel between $0.3100 and $0.8942 between March 2022 and November 2022. This consolidation ended in November last year when it surged by over 270%.
In Shiba Inu’s case, the analysts argue that the ongoing consolidation could be part of the accumulation phase of the Wyckoff Theory.
Sideways movements, low volume, and low volatility characterize this accumulation phase. It often leads to a strong bullish breakout as it moved to the markup phase.
SHIB Price Technical Analysis Points to a Strong Rebound
The weekly chart shows that the SHIB price surged to a record high of $0.000088 in October 2021 as the hype surrounding dog-themed tokens surged. It then dropped and bottomed at $0.000005822 in June 2023.
The token has recently remained in a tight range slightly above the ascending trendline that connects the lowest swings since June 2023. It has often rebounded after hitting that support.
A closer look shows that the token has formed the harmonic pattern known as XABCD. This pattern started in March last year when it jumped to a high of $0.000045.
The XA section formed between that time and August last year and then the AB one happened between August and November last year. It is now at the C level, meaning that it may be about to move into the CD section, with D being the highest point in March last year, which is about 270% above the current level.
The initial target will be the resistance level at $0.00003317, its highest level in November last year, which is about 165% above the current level.
On the flip side, a drop below the ascending trendline will point to more downside, potentially to the all-time low of $0.0000058 or even lower.
Rising Shiba Inu Burn Rate as a Catalyst
One potential catalyst for the Shiba Inu price is that its supply has continued moving downward. Data shows that the burn rate jumped by 548% on Wednesday to 1.45 million SHIB tokens. This increase happened as one user sent 1.19 million tokens to an inaccessible wallet.
This token burn has brought the circulating supply to 584 billion, down from 1 trillion when it was launched.
The other catalyst for the SHIB price is that whales have continued to accumulate it. Their holdings jumped by 4.67% in the last 30 days to 45 billion. At the same time, Shiba Inu’s exchange balances have dropped to 279.15 trillion, down from 290 trillion last month.
Summary
Shiba Inu price has continued to consolidate this year. This consolidation may be a calm before the storm as it remains in the accumulation phase of the Wyckoff Theory. Therefore, together with whale buying, reducing exchange balances, and increasing burn rate point to an eventual rebound.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
