Can the Price of Shiba Inu Keep Up With New Meme Coins When the SHIB Burn Rate Increases by 22,000%?
The price of Shiba Inu has been trailing behind more recent meme currencies like FARTCOIN and PEPE, which have seen significant increases over the past month. But a recent rise in active addresses and SHIB burn rate has raised questions about whether the second-largest meme coin can rival these new ones.
As of this writing, the SHIB value displays bearish signals after declining 2% to $0.000013. The declines follow a pullback by the larger cryptocurrency market when Bitcoin (BTC) fell below $96,000.
Shiba Inu Price in Focus as Burn Rate Spikes 22,000%
Following a sharp increase in the burn rate, a rally in the price of Shiba Inu is imminent. According to Shibburn data, over 27 million tokens have been taken out of circulation in the past day, with one address burning over 15 million SHIB.
Following a spike in the number of active addresses to the greatest level in almost two months, the soaring burn rate is accompanied by a spike in user activity. According to Santiment data, there have been 23,014 active addresses over the past seven days, which is the most 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?
As traders look for rapid rewards, capital has been shifting from older meme currencies to younger ones in recent weeks. This capital rotation comes after a poor month for Shiba Inu prices, which have only increased by 9%. In comparison, PEPE has increased by 23% and FARTCOIN has risen by 196% over the same time frame.
However, if these younger coins exhibit signs of a declining trend, traders may move away from them because older meme coins like Dogecoin and SHIB are less volatile. Additionally, analysts have forecast an impending rebound in SHIB. SHIB may face competition from emerging meme currencies if the burn rate and number of active addresses keep increasing. Coins like FARTCOIN will continue to beat Shiba Inu if these foundations deteriorate.
Technical Analysis of Shiba Inus
On the weekly chart, the price of Shiba Inu is emerging from a falling parallel channel, indicating that the bearish momentum is waning and could eventually give way to an upward trend. SHIB must still break over resistance at $0.0000173, though, to confirm a trend move from bearish to bullish and produce a higher high.
Only if the leading meme currency can draw buy-side activity that raises the RSI over 50 will this upswing be verified. By doing this, the market structure change will be confirmed, and the rise towards important resistance levels will be initiated.
A drop below the $0.108 support level could result if the bullish thesis mentioned above is not supported and SHIB is unable to close decisively above the declining trendline. Nonetheless, the meme token could continue to make money as long as the number of active addresses and the SHIB burn rate stay high.
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