On Tuesday, the price of Shiba Inu remained stable as the crypto market surged. The SHIB token rose to a peak of \$0.0000085, which is significantly higher than the year's lowest level of \$0.0000075. After forming a highly bullish chart pattern on the daily chart and with a decrease in token supply on exchanges, it could rise again.
Shiba Inu's price has formed an extremely bullish chart pattern.
The daily timeframe chart shows that SHIB's price has been in a strong bearish trend over the past few months as whales continued to sell tokens and smart money investors dumped their tokens.
Now there are signs that the token is set to rise again after forming several bullish patterns. It has created a significant falling wedge pattern, which consists of two downward sloping and converging trendlines.
The token has also formed an inverse head and shoulders pattern, which is another extremely bullish chart pattern in technical analysis.
Meanwhile, there are also signs that it has formed a bullish divergence pattern, which occurs when oscillators such as the Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) are moving upward while the price continues to move downward. This pattern also leads to a strong bullish breakout.
Therefore, the most likely prediction for SHIB's price is bullish, with the next significant target being the psychological level of \$0.000010, which is approximately 20% above the current level.
On the other hand, falling below the important support level of \$0.00000753 would invalidate Shiba Inu's bullish prediction.
The supply of SHIB on exchanges is rapidly decreasing.
There are several notable bullish catalysts for Shiba Inu that could enhance its performance before the Federal Reserve's interest rate decision.
One of the most important catalysts is that the supply of SHIB tokens on exchanges has been consistently decreasing over the past few days. As the chart below shows, the supply on exchanges has decreased to 287 trillion, which is its lowest level in months. This has dropped from the month's high of 340 trillion, indicating that investors have transferred over 53 trillion tokens in the past few days.
A rapid decline in exchange supply is a sign that investors expect the token to rise again in the coming weeks.
Meanwhile, more Shiba Inu tokens are being incinerated. In the last 24 hours, token burn has increased by 1,244% to over 17 million tokens. The majority of this burn was due to one holder who transferred over 13.5 million tokens to a burn address.
Token burn is generally bullish because it reduces the amount of tokens in circulation. However, historically, there has been no significant relationship between the price of the token and the burn rate. For example, Shiba Inu's price has underperformed the market while the network has burned over 410 trillion tokens.
