Shiba Inu price faces bearish pressure despite the broader crypto market recording a relief rally over the weekend. SHIB has lost over $1 billion in market cap in the last month, and even as analysts forecast a potential rally, Shiba Inu Coin (SHIB) continues to face bearish headwinds, including a drop in the burn rate and lack of Shibarium TVL. Let’s explore several factors that continue to weigh on SHIB and why a 500% rally may not happen in the near-term. Analyst Forecasts 500% Rally for Shiba Inu Price According to analyst Crypto Elites, Shiba Inu Coin price has formed a cup and handle pattern, suggesting that a bullish reversal is likely to happen. For the meme coin to complete this pattern and confirm an upward momentum, it needs to break above the neckline. In his analysis, Crypto Elites stated that a breakout could potentially stir a 12x rally for Shiba Inu price to resistance at $0.000183. Such a rally would constitute a 500% gain from the current price. SHIB/USDT: 1-day Chart While this pattern suggests that a bullish breakout for SHIB could be nea r, the meme coin continues to face several headwinds. SHIB Burn Rate Drops The Shiba Inu burn rate has dropped, raising concerns about the impact on a potential price rally. Data from Shibburn shows that in the last 24 hours, Shiba Inu’s burn rate has dropped by 11%. The current burn rate is also down by 26% based on the weekly average. SHIB Burn Rate When the burn rate drops, it means that fewer tokens are being taken out of circulation. If the supply of the token fails to drop as demand remains weak, it could drive the prices lower. One of the factors that influence the SHIB burn rate is the level of activity on the Shibarium network. When the network activity decreases, it leads to a reduced burn rate that affects the Shiba Inu price performance. Shibarium TVL Approaches Record Lows Shiba Inu’s layer-2 network, Shibarium, has seen a drastic drop in activity after its Total Value Locked (TVL) recently dropped to its lowest level in over five months. At press time, Shibarium’s TVL stood at $2.09M per DeFiLlama. Shibarium TVL Without an increase in network activity on Shibarium, the SHIB burn rate could continue to decline. This may weigh on the price and hinder the potential for SHIB to hit its bullish targets . What’s Next For Shiba Inu Price? Shiba Inu price completed a double bottom pattern, which suggests that a bullish reversal is likely. However, to resume the uptrend, SHIB needs to flip the resistance at the neckline of this pattern at $0.000014 for the price to target $0.0000159. Buying pressure is lacking to support such a rally as depicted by the neutral RSI level of 50. At the same time, the dropping ADX line shows weak momentum that may precede another downside correction or force the meme coin into consolidation. Traders should watch out for support at $0.00001316, as a breach of this level could fuel a bearish Shiba Inu price prediction . Additionally, If SHIB makes a decisive break out from the $0.000014 resistance, it could stir a resumption of bullish trends. SHIB/USDT: 4-hour Chart Final Thoughts Shiba Inu price is facing bearish pressure despite optimism from analysts that it could rally by 500%. For SHIB to record such gains, buyers need to make a strong comeback. At the same time, the burn rate and network activity on Shibarium need to surge for a sustained rally. The post Analyst Forecasts 500% Rally For Shiba Inu Price But SHIB Burn Rate, Shibarium TVL Pose Risks appeared first on CoinGape .
