Two reasons why Shiba Inu price is about to break out

Shiba Inu’s burn portal has destroyed 12 billion SHIB within 48 hours after its launch. Proponents believe that reducing the token’s circulating supply could drive prices higher. 

Shiba Inu price on track to break out

Shiba Inu price has remained influenced mainly by the rise in the number of SHIB being put out of circulation and its accumulation by large wallet investors. Proponents have witnessed a rise in this trend as whales on the Ethereum network scoop up tokens through every dip. 

The news of the launch of Shiba Inu’s burn portal was accompanied by a massive purchase of nearly 70 billion SHIB. According to data from Whale Stats, the top 1,000 largest wallet addresses on the Ethereum network now hold $1.37 billion worth of Shiba Inu tokens, constituting 11% of their holdings. 

Shiba Inu is now one of the most significant assets in these whales’ portfolio after USDC and USDT. 

Interestingly, whales’ recent buying spree is accompanied by massive amounts of SHIB tokens being burnt. Influencers in the Shiba Inu community, like @MajesticDrama, have burnt their entire holdings and challenged investors in the community to do the same to drive prices higher. 

The burn portal has fueled a frenzy among market participatns to get rid of their Shiba Inu and reap RYOSHI rewards. More than 12 billion Shiba Inu tokens worth $277,680 were pulled out of circulation within 48 hours of the portal’s launch. 

Analysts are bullish on Shiba Inu price and predict a rally. Akash Girimath, a leading crypto analyst at FXStreet, observed a bullish fractal in the Shiba Inu chart. The trader argues the price trend is similar to August-September 2021 when SHIB ended its consolidation and started an uptrend. Shiba Inu appears to be collecting liquidity and could climb to $0.00038.