The Shiba Inu Coin price was flat on January 14, even as Bitcoin and other top altcoins recovered.
Summary
- The Shiba Inu Coin price has formed a major descending wedge chart pattern.
- The coin’s burn rate increased by more than 1,000% on Wednesday.
- The supply of SHIB coins on exchanges has decreased in recent months.
Shiba Inu (SHIB), a top meme coin on Ethereum’s network, was trading at $0.00000885, ~30% above its December low. However, this consolidation may be about to end if the token’s burn rate increases and a falling wedge pattern emerges.
Data collected by Shiburn shows that the daily burning rate today increased by 1,057% to over 1.4 million. The symbolic burns led to a significant reduction in circulating supply to 585.4 billion.
Additional data shows that the supply of SHIB tokens on exchanges has continued to decline this year. In most cases, a drop in currency supply is usually a bullish sign as it is a sign that investors are accumulating the token. According to Nansen, whales have increased their holdings this year, with transactions up 111%.
One reason for the accumulation is that Shiba Inu have become cheap after falling more than 70% from their 2025 peak. The 30-day market value to realized value (MVRV) ratio has fallen to 4.7%, pointing to further gains as the historical average is between 10% and 25%.
Furthermore, the Crypto Fear and Greed Index jumped from the extreme fear zone of 10 to 53 today. It is likely that the country will soon enter the greed zone. Meme coins often do well when the index moves into greed territory.
Technical analysis of Shiba Inu Coin prices
The daily chart shows that SHIB price bottomed at $0.0000068 in December and then recovered to almost $0.000010. This recovery occurred as the two lines of the multi-month falling wedge pattern neared convergence.
Shiba Inu rebounded above this top and then tested it again. A break-and-retest is a common approach to fixing pimples.
The coin’s Relative Strength Index and Percentage Price Oscillator are trending upward. Therefore, the most likely scenario is a recovery as bulls target the crucial resistance level at $0.00001485, the highest level seen in September last year.
The bullish SHIB price prediction becomes invalid if it falls below the bottom of the wedge at $0.0000068.
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