Shiba Inu Burns 17M Tokens – Could a Parabolic Rally Be Next?
17 million Shiba Inu (SHIB) tokens were burnt in the last 2 days, data provided by shibburn.com suggests. That makes for a good title, but actually, that only amounts to tokens worth around $500 being burnt.
That’s pretty minuscule in the grand scheme of things, with Shiba Inu’s market cap around $16.58 billion as of Thursday.
Still, in a world dominated by highly inflationary fiat currencies, where the M2 US dollar money supply is up by around 50% since 2020 per TradingEconomics data, it’s a reminder of the benefits of non-inflationary cryptocurrencies.
Of course, protection against inflation isn’t really a narrative for meme coins like Shiba Inu, that’s more the realm of Bitcoin (BTC).
Shiba Inu (SHIB) is a much more speculative bet, a meme coin that relies upon hype cycles, and its ever-growing and highly dedicated community of followers, investors and aficionados.
While the latest deflation figures from shibburn.com are unlikely to move the needle for Shiba Inu, there are plenty of other reasons for investors to be excited right now.
Shiba Inu – Could a Parabolic Rally Be Next?
$SHIB was last trading just above $0.000028, within recent ranges and close to its 21DMA.
The stunning rally in early November thanks to President Trump’s US Presidential election victory has mostly petered out at this point.
But Shiba Inu’s strong bounce from its 50DMA earlier this week suggests the bulls remain in control of this market and price predictions remain bullish.
And that should come as no surprise, given all the positive developments going on in the USA right now.
The incoming US administration is set to be the most pro-crypto in history, and the new Congress, also very pro-crypto, is expected to deliver regulatory certainty to the industry next year.
Trump was literally jawboning about how he will “do something great with crypto” during his upcoming term.
It’s a great time in the crypto space, and meme coins, which are one of the best-performing crypto sectors this year, are likely to do very well in the coming months.
But that won’t mean a gradual grind higher. Meme coins like Shiba Inu tend to experience rapid parabolic moves higher.
One crypto trader called Astekz said the $SHIB chart is showing “parabolic potential from here”.
The CryptoBull, meanwhile, showed a chart where he expects SHIB to soon break out of a downtrend from its 2021 highs.
Other X users were keen to point out why Shiba Inu is likely to be one of the leading gainers in any future meme season.
These include the massive size of the Shiba Inu community and its broad and growing ecosystem which embeds $SHIB with tonnes of real utility.
How High Will $SHIB Charge?
So, if parabolic rallies are right around the corner for Shiba Inu, how high could the meme coin go.
Well, once the meme coin breaks above its prior record levels of just under $0.000090 and enters price discovery, it’s really anyone’s guess.
But a rally towards the 3.618 or 4.236 Fibonacci extension from the 2023 lows back to the 2021 highs suggests gains of as much as 10x from current levels are very possible.
That would see $SHIB attain a market cap of over $150 billion.
That may seem ridiculous, but if Bitcoin hits $200,000, that would see its market cap exceed $4 trillion. In this scenario, SHIB’s market cap would only amount to about 4% of Bitcoin’s, which is to unbelievable when considering its position as a leading meme coin in the market.
Either way, the near-term future looks very bright for the meme coin space and Shiba Inu, though, as ever, these are incredibly volatile markets.
In order to reap big gains, investors also need to be able to HODL through rapid and aggressive downturns.
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