   
The price of Shiba Inu (SHIB) is up 20.4% and is trading at $0.00001603 at the time of writing. The recent price gains have come amid a recovery in the cryptocurrency market over the past 48 hours. In addition to the overall market recovery, a recent X-post from Elon Musk has boosted interest in dog-themed meme coins.
Will Shiba Inu see a 498% increase?
According to analyst Javon Marks at X, Shiba Inu is on the verge of a major rally that could lead to a price increase of over 498%.
The analyst pointed to the formation of a falling wedge pattern on the Shiba Inu daily chart, which confirmed a bullish divergence. In the analysis, the trader noted that SHIB could reach $0.000081 if the bullish thesis proves true.
“Shiba prices are currently approaching the convergence or breakout point of a massive falling wedge pattern on the daily chart (1D chart). This may trigger the next phase of strong upside, with a target of $0.000081 still in play due to a larger breakout already in place,” the analyst said.
The four-hour chart of SHIB shows that ETH is consolidating after recovering from the August 5 crash. For an uptrend to be confirmed and set the pace for a massive rally, SHIB must break out of the upper trendline of the parallel channel. A break below this channel could trigger further price declines.
 
The Moving Average Convergence Divergence (MACD) line is turning up as it has moved above the signal line. The potential for a sustained uptrend is also evident as the MACD histogram bars are currently in the green zone.
The Relative Strength Index (RSI) shows that buying activity remains relatively weak. The RSI is currently at 54, indicating a neutral market sentiment. The RSI line is also sloping south on the four-hour chart, indicating a possible reversal.
SHIB burn rate increases by 1,000%
The recent SHIB gains come amid a significant increase in the Shiba Inu burn rate. Data from Shibburn shows that 72,020,410 $SHIB tokens were removed from circulation in the last 24 hours, representing an increase of over 1,000%.
The increase in SHIB burn rate indicates increased network usage. The weakening supply could also support the long-term bullish thesis surrounding Shiba Inu. Rising demand while supply is decreasing could push SHIB to a record high.
