- Shiba Inu 2021 gains
- Shiba Inu in a range
- Shiba Inu token burn process
- Ethereum Mainnet Beacon chain merger
Shiba Inu was one of the best performing tokens last year, gaining a jaw-dropping 121,000,000% as the token raced to record highs of $0.00008997. The gains came as the meme coin experienced strong visibility with listing in some of the biggest exchanges, which led to increased liquidity.
The launch of the decentralized exchange ShibaSwap only strengthened Shiba Inu’s liquidity and visibility in the market, allowing investors to stake the coin den earn passive income. Shiba Inu also benefited from the overall cryptocurrency market turning bullish, depicted by strong rallies to all-time highs among major virtual currencies.
Shiba Inu technical analysis
Sentiments have changed, and the meme coin has given back a significant chunk of the gains. The coin is already down by more than 70% from all-time highs in line with a deep pullback in the overall sector.
After plunging to lows of $0.00001710 early in the year, Shiba Inu bounced back and showed signs of breaking out. A 40% plus rally from 2022 lows might as well signal that upward momentum is gathering steam and that the meme coin could bounce back in the continuation of the emerging uptrend.
Recently, the $0.00002212 area has emerged as a pivotal support level above which SHIBUSD remains well-positioned to rally and post significant gains. Similarly, the $0.00002970 area has emerged as a racial resistance level curtailing any upside action.
A rally followed by a daily close above the $0.00002970 level should affirm the emerging uptrend setting the stage for bulls to steer a rally to highs of $0.00003523, the next resistance level. Likewise, a drop followed by a close below the $0.00002212 could leave SHIBUSD susceptible to further losses which could see it tank significantly. However
SHIBUSD’s outlook has improved, affirming prospects of the coin edging higher.
Shiba Inu burning process
The launch of the SHIB burn portal could be the catalyst to fuel a strong price move to the upside. Shiba Inu developers launched the burn portal, which rewards users for burning SHIB tokens on the ShibaSwap exchange platform. The burning process works by token holders sending part of their holdings to a wallet where they can never be retrieved.
The burning process is expected to reduce Shiba Inu tokens in supply. Some 11 billion SHIB tokens valued at about $250,000 have been removed from circulation as part of the process. Token holders are incentivized to burn on the prospect of earning annualized yields of 9%.
The reduction of SHIB tokens in supply is one factor expected to drive prices higher, given the strong demand in the market. The prospects of generating passive income from burning SHIB tokens should be the catalyst to cause a reduction in SHIB tokens in the supply.
Beacon Chain and Ethereum mainnet merger
In addition to the burning process, the SHIB token is also receiving support from the expected merger of the Beacon Chain with Ethereum Mainnet. The event, which is expected to take place in the second half of the year, could cause Shiba Inu tokens to skyrocket as it is an ERC-20 compatible token built on top of the Ethereum blockchain.
As it stands, purchases of virtual land on the Shiba Inu metaverse can only take place on Ethereum tokens. A merger between Beacon chain and Ethereum Mainnet is expected to improve Ethereum blockchain efficiency, which should be good for Shiba Inu.
Shiba Inu’s price action has been restricted to a tight trading range in recent days. However, as accumulation takes place after the recent pullback, the meme coin could be in for a major break out amid improving underlying fundamentals. The Shiba Inu burn process and the expected upgrade of the Ethereum Mainnet are some of the factors likely to support the Shiba Inu price breakout.