Shiba Inu (SHIB) Price Has Tanked by 41.75% This Year, Mirroring the Performance of Other Traditional Meme Coins

This crash has coincided with sustained selling by whales, who have dumped over 13 trillion tokens since January.

Shiba Inu price has crashed this year, and one potential reason is the sustained selling by whales, who have dumped 13 trillion tokens since January.

On the positive side, the SHIB token burn is rising, while the chart has formed a bullish harmonic pattern, which may lead to a strong surge in the long term.

Shiba Inu Price Crashed as Whales Sold 13 Trillion Tokens

Shiba Inu price has sold off this year as whales continued to sell their coins. A likely reason for their sale is profit-taking, as it jumped by 210% between the lowest level in July last year and its peak in November.

According to blockchain data tracker, Santiment, the supply of SHIB coins held by whales dropped from 743 trillion on January 5 to 730 trillion today.

Chart of Shiba Inu price action and whale standard deviation from January 5 / CC BY 2,000,000,000

Whales are often seen as being more experienced and sophisticated investors than their retail counterparts. In most cases, these investors buy when an asset’s price is bottoming and exit when it is at an elevated level.

As such, the ongoing dumping by whales is a sign that the SHIB price will continue falling in the near term.

Will SHIB Token Burn Help Boost Price?

Shiba Inu price has three key potential catalysts: the burn is increasing, Shibarium transactions are surging and its harmonic pattern on the weekly chart.

ShibBurn data shows that the daily Shiba Inu burn rate soared by 3,145% on Monday as 18.83 million tokens were moved into an inaccessible address. This burn means that over 410 trillion tokens have been removed from circulation since its inception.

The total SHIB burn is still less than 0.1% of the total supply of one quadrillion. But the burn is said to be accelerating, especially in recent months.

Burning a cryptocurrency reduces the number of tokens in circulation, making it deflationary. This differs from a token unlock, which increases supply. In theory, burning a token will push its price up, while unlocking will decrease it.

Shiba Inu price may also benefit from the growing Shibarium network, which completed 1,129 billion transactions and has 206 million addresses.

The layer-2 network is among the most active in the industry. A highly active Shibarium benefits SHIB since fees in the network are converted into SHIB and burned.

SHIB Price Harmonic Pattern Points to Rebound

The short-term SHIB price forecast will be bearish as the whale dumping continues. However, there are chances that the coin will bounce back in the long term since it has formed a rare harmonic pattern on the weekly chart.

The XA move occurred between March and August last year, while AB happened in December. It has now dropped to the C point at $0.000010. If this pattern works well, it means that the CD section will push it to the 2024 high of $0.00004552.

Notably, Shiba Inu price formed a double-bottom pattern at $0.00001090 level, providing further catalyst. A double-bottom comprises two support levels, and a neckline, which is at $0.00003310 in this case.

A crash below the support point at $0.00001090 will invalidate the XABCD and the double-bottom patterns, which will put the Shiba Inu price at risk of dropping to $0.0000050.

Frequently Asked Questions (FAQs)

1. Did whale dumping lead to the recent Shiba Inu price crash?

2. Will the Shiba Inu token burn help boost the price?

3. What is the main catalyst for the Shiba Inu coin price?