Shiba Inu price has been in a strong downward momentum after peaking at $0.0000329 in December last year.
Shiba Inu (SHIB) has dropped by 61% and crashed to its lowest level since September 5, 2024.
This crash has coincided with the overall weakness in the crypto industry, especially meme coins. Most meme coins, including the likes of Dogecoin (DOGE), Pepe (PEPE), and Floki (FLOKI) have fallen by double digits.
Shiba Inu price has three potential catalysts that may push it higher in the coming days. First, its burn rate has jumped in the past few days. The daily burn rate rose by 3,253% to 29.3 million on March 8.
This means that the network has incinerated over 410 trillion coins since its inception, leaving the circulating supply at 584 trillion. A token burn is a mechanism where cryptocurrencies are transferred to an inaccessible address.
Second, Shiba Inu price has become a bargain, according to the Z score of the Market Value to Realized Value or MVRV indicator. Santiment data shows that the MVRV-Z score has crashed to minus 2.143, its lowest level since August last year. It has fallen from the December high of 0.35.
The last time the MVRV indicator dropped to these levels it triggered a 215% surge to its December highs. That could be a sign that investors will start buying the dip.
SHIB technicals
The daily chart shows that the SHIB price has crashed to a key support level, where it failed to move below four times since July last year. That is a sign that bears are afraid of shorting the coin below that level.
The accumulation and distribution indicator has continued rising, a sign that smart money investors are buying. Also, the Relative Strength Index and the Moving Average Convergence/Divergence (MACD) indicators have formed a bullish divergence pattern.
Additionally, Shiba Inu price has formed a falling wedge pattern, with the two lines about to converge. Therefore, the coin will likely have a strong bullish breakout, with the next target to watch being the December high of $0.00003325, up by 155% from the current level.
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