Shiba Inu Price Eyes $0.0002 As Burn Rate Targets 1 Trillion SHIB Daily

Key Insights:

• SHIB’s burn rate surged 3000% in 24 hours, with over 67 million tokens burned in a single week.
• Daily 1 trillion SHIB burns could reduce supply by 62% in one year, potentially pushing price to $0.000030.
• Shiba Inu price broke above a key Fibonacci level, with the next major target at $0.00006318 if the bullish trend holds.

Shiba Inu (SHIB) price attracted new attention as it traded above $0.00001300 and aimed for higher resistance levels. The meme coin has seen growing investor interest following Bitcoin’s move above $100,000.

With a surge in SHIB burn activity and rising on-chain engagement, the market is now watching closely. If momentum continues, analysts say SHIB price could attempt to reach the $0.0002 mark in the coming months.

Burn Rate Surge and Market Supply Reduction

The SHIB burn rate has become a central focus for both its developer team and community. Data from Shibburn showed that over 67 million SHIB tokens were burned in one week.

Its 24-hour burn rate jumped more than 3,000%. This spike was part of a wider goal to reduce the circulating supply through regular token burns.

Developers suggest that burning 1 trillion SHIB tokens daily could drastically impact the Shiba Inu meme coin supply over time. With roughly 589 trillion tokens in circulation, removing 365 trillion tokens within a year would cut the supply by around 62%.

Analyst Grok3 estimates that such a reduction could raise SHIB’s price by 167% to approximately $0.000037, assuming the market cap remains unchanged.

Shibarium, Shiba Inu’s layer-2 blockchain, plays a critical role in this supply strategy. Currently, the network holds about $3 million in total value locked (TVL).

To meet the aggressive burn goals, the TVL would need to increase substantially. The community has set a target of $1 billion, which would put Shibarium in the same range as top DeFi platforms like Arbitrum and Polygon.

Technical Indicators Show Bullish Trends for Shiba Inu

The SHIB monthly chart indicates a long-term rounding bottom pattern forming since 2023. It often signals a potential trend reversal.

SHIB has broken above the 78.6% Fibonacci retracement level near $0.00000420, with key upside targets at $0.00006318 and $0.00009000, corresponding to the 100% and 127.2% Fibonacci extensions.

The Directional Movement Index (DMI) confirms bullish momentum, as the +DI is above the –DI and the ADX is near 45, suggesting a strong trend. However, analysts caution that a rise in volume is necessary for SHIB to break above $0.00001644. It aligns with the middle Bollinger Band.

When writing, the trading volume was low compared to peaks in 2021 and 2022. If volume increases and SHIB holds above $0.00001500, a move toward $0.000063 could follow. Otherwise, a retest of support near $0.00000420 is possible.

Open Interest and Trader Sentiment

Data from CoinGlass revealed that SHIB’s futures open interest spiked sharply during major price movements. Between February and April 2023, open interest jumped from under $30 million to over $180 million. This increase coincided with a rapid price rise, reflecting growing market participation.

Another spike occurred in November, where open interest again surpassed $150 million as SHIB’s price rose. However, by mid-December, both price and open interest declined.

This retreat suggested a wave of position closures or liquidations amid high volatility. Analysts believe a consistent rise in both price and open interest is needed to maintain the uptrend.

The consolidation phase from July to October 2023, marked by stable price and volume, may have laid the foundation for the current bullish shift. On-chain data also showed an increase in Shiba Inu transactions and wallet activity on Shibarium. It further supported the bullish sentiment.

Shiba Inu Resistance Levels and Price Outlook

Shiba Inu traded at $0.000014 at press time after rising 6.8% in the past 24 hours. The first level of resistance was $0.00001550. If SHIB price could break that resistance, it could rise to $0.000020. If it maintains such a growth and hits a burn rate of 1 trillion per day, the price could reach $0.0001.

Bollinger Bands proved that SHIB price was trending below the middle line. However, continuous upward movement could push this token to the upper level.

The 100% Fibonacci target stood at $0.00006318. Long-term goals are $0.00009000 and $0.00010186 in the case of trading volume and burn growth.

The price of Shiba Inu also fluctuates with the rest of the cryptocurrency market trends. Thus, if Bitcoin continues the rally and meme coin interest continues to rise, SHIB could attract more attention.

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