Shiba Inu (SHIB) has formed a highly bullish harmonic chart pattern, signaling a potential 190% price surge as its burn rate skyrockets by an astonishing 234,584%.
On Sunday, Shiba Inu’s price reached $0.000016, its highest point since February, marking a 52% increase from the year’s low. The surge came alongside Ethereum (ETH) holding a significant resistance level at $2,500, a level it hadn’t touched since February. This price movement contributed to broader gains for other popular ERC tokens, including Pepe (PEPE), AAVE (AAVE), and Uniswap (UNI).
The rise in Shiba Inu’s price was further bolstered by a dramatic spike in the coin’s burn rate. Over 19 million SHIB tokens were incinerated, with one user sending 17.8 million tokens to a burn address and another burning 1 million tokens. The burn mechanism is believed to help drive price appreciation by reducing the overall token supply.
Since its inception, Shiba Inu has burned over 410 trillion tokens, with the bulk of these burns coming from Vitalik Buterin. Additionally, the growing Shibarium network, a Layer-2 solution for Shiba Inu, has been a positive factor. In the past 24 hours alone, Shibarium handled over 3.76 million transactions, bringing its total to 1.152 billion. The network’s total value locked (TVL) has surged to $3.84 million, its highest since January, up from $2.15 million earlier this year. Much of this growth has been driven by platforms like ShibaSwap and WoofSwap.
On the technical side, Shiba Inu’s price pattern has shown a significant harmonic chart formation. The XA section occurred between its highest point in 2024 and the lowest in August, followed by the AB section through December and BC through April. The ongoing CD section could propel Shiba Inu back to its 2024 high of $0.0000455, a 190% increase from the current price.
A key indicator for further gains is the AC section of the pattern, positioned at $0.000033, representing a double bottom. If Shiba Inu surges past the neckline at $0.000033, the path to its 2024 high will likely be confirmed.
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