Can SHIB price surge 150% as Shiba Inu burn rate rockets over 3,200%?

Shiba Inu (SHIB) has experienced a significant price decline since its December peak of $0.0000329, dropping 61% to its lowest point since September 5, 2024. This downturn mirrors a broader weakness in the cryptocurrency market, particularly affecting meme coins like Dogecoin (DOGE), Pepe (PEPE), and Floki (FLOKI), which have also seen substantial double-digit losses.

However, several potential catalysts could drive a price increase for SHIB in the near future. Firstly, the daily burn rate has surged dramatically, increasing by 3,253% to 29.3 million on March 8th. This brings the total number of burned coins to over 410 trillion, leaving a circulating supply of 584 trillion. A token burn, where coins are sent to an inaccessible address, reduces the circulating supply and can potentially increase value.

Secondly, the Market Value to Realized Value (MVRV) Z-score indicates SHIB may be undervalued. Santiment data shows the MVRV-Z score plummeted to -2.143, its lowest level since August of last year, down from a December high of 0.35. Historically, similar drops in the MVRV indicator have preceded significant price surges (215% in the past). This suggests a potential "buy the dip" opportunity for investors.

Technical analysis of the SHIB price chart reveals a potential bullish scenario. The price has fallen to a key support level, repeatedly defended since July 2024, suggesting hesitation among sellers to push the price lower. Furthermore, the Accumulation/Distribution indicator shows continued upward movement, indicating smart money accumulation. Bullish divergence is also evident in the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators. Finally, the formation of a falling wedge pattern hints at a potential strong bullish breakout, with a possible target of the December high at $0.00003325 – a 155% increase from current levels.