Shiba Inu has formed a strongly bullish harmonic pattern indicating a potential 190% price surge driven by a massive rise in token burn activity.
On Sunday, the value of the popular cryptocurrency jumped to $0.000016, marking its highest point since February this year and representing a notable increase of approximately 52% from its lowest value of the year.
The recent Shiba Inu price rally coincided with Ethereum approaching a significant resistance level at $2,500 for the first time in months. This positive momentum also spilled over into other prominent ERC-20 tokens, including Pepe, AAVE, and Uniswap.
Additionally, Shiba Inu’s burn rate surged an astonishing 234,584% in a single day, with over 19 million SHIB tokens permanently removed from circulation. Specifically, one user alone burned roughly 17.8 million tokens, while another individual destroyed about 1 million tokens.
Historically, burning tokens tends to support higher cryptocurrency prices due to its impact on circulating supply. Since inception, Shiba Inu has had over 410 trillion tokens burned, with a significant portion previously sent to burn addresses by Ethereum’s Vitalik Buterin.
Further supporting recent gains has been strong growth within Shiba Inu’s own layer-two blockchain solution, the Shibarium network. In just the past 24 hours, Shibarium successfully processed over 3.76 million transactions, bringing its cumulative transactions to 1.152 billion. Additionally, the network now has surpassed 207 million wallet addresses.
The network’s total value locked (TVL) has also seen a substantial increase, reaching $3.84 million, its highest level since January. Earlier in the year, TVL stood at about $2.15 million. Much of this rise can be attributed to decentralized platforms such as ShibaSwap and WoofSwap.
From a technical analysis perspective, the weekly chart reveals a notable harmonic pattern development. Specifically, the coin has completed the XA leg – stretching from its peak in 2024 to its low point reached in August – then traced the AB leg into December, followed by the BC leg up to April. Currently, Shiba Inu’s price chart is entering the potentially powerful CD leg, which could propel it to retest its 2024 high of around $0.0000455, a target roughly 190% above recent trade levels.
A crucial technical barrier is located at $0.000033, where a double bottom formation has taken shape. Should Shiba Inu break decisively above this key resistance, market observers argue it would confirm the bullish scenario, paving the way towards substantial further appreciation.
