Shiba Inu price suffered a harsh reversal on Monday, Dec. 9, as Bitcoin and other altcoins retreated.
Shiba Inu (SHIB) dropped by about 7% to a low of $0.000030, much lower than this month’s high of $0.000033. Other popular meme coins also experienced declines, with Popcat (POPCAT), Peanut the Squirrel, and Dogwifhat (WIF) leading the way.
Shiba Inu’s retreat coincided with a significant drop in its burn rate. Data from ShibBurn showed the burn rate decreased by about 90% to 413,412 SHIB coins. This marked a sharp decline after a wallet burned 250 million SHIB coins in a single transaction on Friday.
Shiba Inu has burned over 410 trillion SHIB coins since its inception, leaving 589 trillion coins in circulation. This burning process is expected to continue over the long term, which could make the remaining coins more valuable.
Meanwhile, data from Shiba Inu’s ecosystem indicates positive growth. Shibarium, a layer-2 network, has processed over 623 million transactions since its inception. It recently surpassed 2 million total addresses, while total BONE transfers have risen to nearly 2 million.
ShibaSwap, a decentralized exchange within the ecosystem, has achieved over $28 million in total value locked. The number of transactions in the network has increased, and annualized fees have risen to over $3.2 million.
Shiba Inu price rally has more room to run
The daily chart shows that SHIB’s price reversed after rising to the significant resistance level of $0.00003280, its highest level since March 28.
Shiba Inu price formed a golden cross pattern as the 200-day and 50-day Weighted Moving Averages crossed. The coin appears to be forming a cup and handle pattern, with a depth of approximately 67%.
By measuring 67% from $0.00003280, the target is set at $0.00005478. The coin will need to surpass its year-to-date high of $0.000045 to confirm movement toward this target.
The bullish outlook will be invalidated if SHIB’s price drops below the 50-week moving average at $0.000026.
