Shiba Inu Coin price was flat on Jan. 14, even as Bitcoin and other top altcoins rebounded.
Summary
- Shiba Inu Coin price has formed a large falling wedge chart pattern.
- The coin’s burn rate jumped by over 1,000% on Wednesday.
- The supply of SHIB coins in exchanges has dropped in the past few months.
Shiba Inu (SHIB), a top meme coin on Ethereum’s network, was trading at $0.00000885, ~30% above its December low. This consolidation, however, could be about to end as the token’s burn rate jumps and a falling wedge pattern forms.
Data compiled by Shiburn shows that the daily burn rate soared by 1,057% today to over 1.4 million. Its token burns have led to a significant reduction in the circulating supply to 585.4 billion.
Additional data indicate that the supply of SHIB tokens on exchanges has continued to fall this year. In most cases, a decline in exchange supply is usually a bullish sign as it is a sign that investors are accumulating the token. Indeed, according to Nansen, whales have boosted their holdings this year, with transactions rising by 111%.
One reason for the accumulation is that Shiba Inu has become cheap after plunging by more than 70% from its peak in 2025. The 30-day Market Value to Realized Value (MVRV) ratio has declined to 4.7%, indicating further gains, as the historical average is between 10% and 25%.
Additionally, the Crypto Fear and Greed Index has jumped from the extreme fear zone of 10 to 53 today. It is likely to move into the greed zone soon. Meme coins often do well when the index moves to the greed area.
Shiba Inu Coin price technical analysis
The daily chart shows that the SHIB price bottomed at $0.0000068 in December and then rebounded to nearly $0.000010. This rebound happened as the two lines of the multi-month falling wedge pattern neared their convergence.
Shiba Inu rebounded above this upper side and then retested it. A break-and-retest is a common approach used to confirm breakouts.
The coin’s Relative Strength Index and the Percentage Price Oscillator have pointed upwards. Therefore, the most likely scenario is a rebound as bulls target the crucial resistance level at $0.00001485, its highest level in September last year.
The bullish SHIB price forecast will become invalid if it drops below the lower side of the wedge at $0.0000068.
