Shiba Inu is breaking down, the prices have dropped by more than 12% since the previous trading day and pierced through the crucial support at $0.00001, validating the commencement of a fine bearish wave. However, in a longer perspective, the price is believed to rise above the yearly highs and head towards $0.00002 very soon.
But how will the SHIB price flip the current bearish trend?
Shytoshi Kusama, Shibaswap’s lead developer, recently confirmed that the Shibarium beta version will be released this week. The SHIBArmy was overjoyed about the launch until the market unexpectedly collapsed. This drove the SHIB price lower, which has now plunged below the psychological level of $0.00001.
However, if we consider the burning mechanism of SHIB, then 111 trillion tokens could be burned every year if things happened as per the plan. This is 20% of the entire supply of tokens in circulation currently. Further, with the launch of Shibarium on ShibaSwap, the possibility of burning another trillion tokens each year emerge.
Considering the transaction fee for SHIB token burns on Shibaswap is 1%, nearly 3.7 trillion SHIB tokens may be burned each month. For a year, the burn rate may reach more than 44 trillion, which may be out of circulation. Moreover, if 1% of fees get stacked on Shibarium, the burn rate may double and reach 111 trillion tokens per year. This could push the prices higher, which may end up slashing a couple of zeros from their value.
What’s Next? When will the SHIB Price Trigger a Rebound?
The above chart displays the formation of the ‘Adam & Eve’ trend reversal pattern in the daily chart. This pattern is one of the varieties of the double bottom pattern where-in the first bottom is on the largest trading volumes and the second bottom is ‘u-shaped’, protracted, and with unremarkable trading volumes, which is an ideal place for a set of medium and long-term positions.
Therefore, the Shiba Inu price displays the possibility of undergoing significant price action in the coming days, which may reclaim the levels beyond $0.000015 to reach $0.00002 in the coming days.