The meme coin market is currently experiencing a pullback as most tokens witnessed double digit dips in 24 hours this week. However, of all the meme coins Shiba Inu (SHIB) suffered the least in this pullback as it experienced lower losses than Bonk, Peanut the Squirrel and Pepe.
Despite registering a 2% decline in its daily price and a weekly slowdown of 8%, the meme coin is likely to surge. As of November 21, Shiba Inu was seen trading at $0.00002406.
Analysts have forecasted that the self-proclaimed Dogecoin killer will soon see an over 50% surge if certain factors play well. Analysts like Ali Martinez are predicting that Shiba Inu will try to cross the $0.000025 resistance level which is 3% away from the ongoing price level. Once SHIB overcomes this barrier it will rise more than 50%.
Earlier in the week of was revealed that 1.7 trillion SHIB tokens were withdrawn from major crypto exchanges in a 24 hours span which could lead to major spike. Martinez highlighted such high volume withdrawal has led to 62% price gain in the past.
This withdrawal suggests that traders are moving away from centralised platforms to self-custody which is a sign of a bullish trend as it means reduction of selling pressure.
Previously, the meme coin market saw another optimistic Shiba Inu forecast where it was underlined that the token will reach a new ATH due to rise in retail investors' interest and developments in Shibarium, the layer 2 scaling solution of the token
Lately, Shibarium protocol has reached a milestone in transactions as it processed more than 500 million transactions. The total blocks in the layer 2 solution is also getting closer to the 8 million milestone.
However, the most vital yardstick of the SHIB token’s growth curve is the high burning rate observed this week. The meme coin’s burning rate gained more than 200% in the 24 hours leading up to November 21. This reduced the SHIB token supply by over 11.5 million.
Such burning events are aimed at reducing the circulating supply of tokens so that its value increases due to scarcity.
Since the Shibarium, Layer 2 solution started, nearly 410.7 trillion Shiba Inu tokens have been sent to null addresses. This made the circulation reach 583.7 trillion.
At the time of writing, SHIB was trading at $0.0000246, up 2.60% in the last 24 hours while its trading volume declined 1.36% to touch $1.29 billion and the market cap rose to $14.51 billion.