3 reasons Shiba Inu price may skyrocket 60% soon

Like Bitcoin and other meme coins, Shiba Inu’s comeback also came amid fears of a potential self-induced recession in the US. There are signs that the ongoing decline in SHIB prices is now coming to an end. First, the amount of SHIB coins being burned has increased dramatically in recent weeks. According to Shibburn, the burn rate has increased by more than 62,000% in the last 24 hours.

The sharp increase in the burn rate was caused by a user who sent about 460 million SHIB coins to a dead wallet. Since its inception, more than 410 trillion SHIB coins have been burned, leaving the circulating supply at around 584 trillion.

The price of Shiba Inu can also be affected by macroeconomic factors. There is a possibility that the stock market will recover from the recent decline caused by Trump’s tariff policies.

Historically, stock and crypto markets fall when risk aversion increases but recover soon after. For example, both markets fell immediately after COVID-19 was declared a pandemic, but soon recovered.

A possible catalyst could be the Federal Reserve's upcoming interest rate decision. With the possibility of a recession increasing, the Fed may signal more interest rate cuts this year. Shiba Inu, Bitcoin, and other cryptocurrencies usually perform well when the Fed cuts interest rates. Technical indicators suggest that SHIB may see a strong uptrend this year. The daily chart shows that Shiba Inu is forming a falling wedge, marked by two descending and converging trend lines.

These trend lines converged at $0.00001260, which coincides with the lowest volatility in July, August, and September last year, making the current price a crucial support level.

The Relative Strength Index rose slightly above the downward trend line, connecting the highest volatility since December last year. Similarly, the Percentage Price Oscillator has made a bullish crossover. Thus, the price of the Shiba Inu breed is likely to show a strong bullish breakout, and the next psychological level to watch is $0.000020, which is 60% higher than the current level.