Shiba Inu (SHIB), a prominent meme coin operating on Ethereum’s network, was observed trading at approximately $0.00000885. This price point represents a notable increase of around 30% from its lowest point in December. This period of consolidation may be nearing its end, signaled by a significant surge in the token's burn rate and the formation of a falling wedge chart pattern.
Key Developments Impacting Shiba Inu
- •Shiba Inu Coin price has formed a large falling wedge chart pattern.
- •The coin’s burn rate experienced a substantial jump exceeding 1,000% on Wednesday.
- •The circulating supply of SHIB coins held on exchanges has shown a consistent decrease over recent months.
Analysis of Burn Rate and Exchange Supply
Data sourced from Shiburn indicates a dramatic increase in the daily burn rate, soaring by 1,057% to surpass 1.4 million tokens. These token burns have contributed to a considerable reduction in the circulating supply, bringing it down to 585.4 billion tokens.
Further analysis reveals a continuing decline in the supply of SHIB tokens available on cryptocurrency exchanges throughout the current year. A decrease in exchange supply is generally interpreted as a bullish indicator, suggesting that investors are actively accumulating the token. Evidence from Nansen supports this observation, as whale investors have increased their holdings, with transactions rising by 111%.
Factors Driving Investor Interest
One contributing factor to this accumulation trend is the perceived affordability of Shiba Inu, following a price drop of over 70% from its peak in 2025. The 30-day Market Value to Realized Value (MVRV) ratio has fallen to 4.7%, which suggests potential for further gains, especially when compared to its historical average range of 10% to 25%.
Additionally, the Crypto Fear and Greed Index has shown a positive shift, moving from a state of "extreme fear" (at 10) to 53. An upward trend towards the "greed" zone is often associated with favorable conditions for meme coins.
Shiba Inu Coin Price Technical Analysis
The daily chart analysis indicates that the SHIB price found a bottom at $0.0000068 in December before initiating a rebound towards $0.000010. This recovery occurred as the converging lines of a multi-month falling wedge pattern approached their intersection point.
Shiba Inu has since broken above the upper boundary of this wedge and subsequently retested it. This break-and-retest action is a widely recognized technical approach used to confirm breakout patterns.
Indicators such as the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have shown upward momentum. Consequently, the most probable scenario is a continued rebound, with bulls targeting the significant resistance level at $0.00001485, which represents its highest point from September of the previous year.
This bullish outlook for the SHIB price would be invalidated if the price were to fall below the lower boundary of the wedge, currently situated at $0.0000068.