The short-term Shiba Inu (SHIB) burn rate has accelerated as the meme cryptocurrency faces increased price volatility.
Specifically, the rate surged 612% in the past 24 hours, with over 3.24 million SHIB tokens permanently removed from circulation, according to data retrieved by Finbold from Shib Burn on January 22.
The continued burning of tokens generally aims to increase SHIB’s value by making it more appealing.
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However, the impact of these burn mechanisms has yet to be felt on the token’s price, given that the supply remains in the trillions.
What next for SHIB price
Amid these changing supply dynamics, Finbold utilized its artificial intelligence (AI) tool to predict how Shiba Inu might trade in the short term.
The tool aggregated insights from several AI models and offered an average predicted price of $0.000022248 on January 31, reflecting an 8.26% potential rise from the current $0.0000205400.
For instance, OpenAI’s GPT-4o Mini is the most bullish, forecasting a 21.77% increase to $0.000025, citing strong momentum trends and positive technical indicators.
Grok 2 Vision predicts a 7.16% rise to $0.000022, driven by moderate upward momentum.
Claude 3 Opus expects a smaller gain of 4.23% to $0.0000213992, noting a lack of significant upward drivers.
Conversely, GPT-4o offered a bearish outlook for Shiba Inu, predicting a slight 0.15% drop to $0.000025000 due to mixed technical signals.
Meanwhile, a technical analysis shared by a cryptocurrency trading expert with the pseudonym CW in an X post on January 21 observed that SHIB has been consolidating within a falling wedge pattern—often associated with bullish breakouts.
A breakout above this pattern’s upper trendline could ignite a rally, with a short-term target price of $0.0004.
If Shiba Inu successfully breaks out, it may gain momentum and attract significant capital inflow.
In addition to the bullish sentiment around the burn mechanism and technical outlook, Shiba Inu has other underlying factors likely to drive price growth.
For example, the ecosystem’s TREAT token, launched on January 14, experienced a 50% price spike before stabilizing, signalling growing utility and engagement on the network.
SHIB could also benefit from Dogecoin’s (DOGE) momentum, as meme coin trends historically align.
There has been increased enthusiasm around Dogecoin after its top promoter, Elon Musk, joined the Donald Trump administration under the Department of Government Efficiency.
SHIB price analysis
By press time, Shiba Inu was trading at $0.00002047, having plunged by about 0.4% in the last 24 hours. On the weekly chart, SHIB is down over 6%.
Regarding SHIB’s technical setup, the meme coin is currently dominated by bearish sentiment despite having a Fear & Greed Index of 84 (Extreme Greed).
At the same time, the Relative Strength Index (RSI) reading of 45.66 indicates a neutral trend for SHIB, while the 50-day Simple Moving Average (SMA) of $0.00002430 suggests bearish momentum in the near term. However, the 200-day SMA of $0.00001924 provides long-term support.
Featured image via Shutterstock
