Shiba Inu’s price has faced significant pressure this year, plunging into a bear market and erasing $12 billion from its market capitalization, which now stands at $7.4 billion. However, multiple indicators suggest that the ongoing decline may be coming to an end, paving the way for a potential 60% surge in SHIB’s value.
1. Surge in Shiba Inu Burn Rate
One of the biggest bullish catalysts for Shiba Inu is the increasing burn rate of SHIB tokens. According to ShibBurn, the burn rate spiked by over 62,000% in the last 24 hours, fueled by a single user who burned nearly 460 million SHIB tokens. Since its inception, over 410 trillion SHIB tokens have been permanently removed from circulation, leaving about 584 trillion in supply.
A rising burn rate reduces the overall supply of SHIB, creating scarcity and potentially driving up its price over time. If this trend continues, it could help stabilize SHIB’s price and push it toward the next resistance levels.
2. Favorable Macroeconomic Factors
Shiba Inu could also benefit from improving macroeconomic conditions. A potential stock market recovery, following declines driven by concerns over Trump’s tariff policies, could lift investor sentiment across financial markets, including crypto.
Historically, both the stock and crypto markets have rebounded quickly after economic shocks. For instance, after the COVID-19 crash in 2020, both markets recovered sharply as stimulus measures were introduced. If the U.S. economy avoids a severe downturn, Shiba Inu could experience a renewed wave of buying interest.
Additionally, the upcoming Federal Reserve interest rate decision could act as a catalyst for SHIB. Rising odds of a U.S. recession may push the Fed to signal further rate cuts this year, which has historically boosted risk assets like cryptocurrencies. Lower interest rates make speculative assets more attractive, potentially driving capital into SHIB and other digital assets.
3. Bullish Technical Patterns
Technical analysis also suggests that SHIB may be on the verge of a major breakout. The daily chart indicates the formation of a falling wedge pattern, a bullish formation marked by two descending and converging trendlines. This pattern has now reached a crucial support level at $0.00001260, which aligns with previous lows in July, August, and September last year.
Further confirming this bullish outlook, the Relative Strength Index (RSI) has moved slightly above a descending trendline that has capped price action since December. Additionally, the Percentage Price Oscillator (PPO) has formed a bullish crossover, signaling increasing upward momentum.
Shiba Inu Price Outlook
With these bullish factors in play, Shiba Inu’s price could soon experience a strong breakout. The next key psychological resistance to watch is $0.000020, representing a potential 60% increase from current levels. If SHIB successfully breaks out of its falling wedge pattern, it may attract more traders and investors, further accelerating its upward movement.
While the broader market sentiment remains a crucial factor, the combination of increasing token burns, improving macroeconomic conditions, and bullish technical signals suggests that Shiba Inu could be set for a significant rally in the coming months.
