2 bullish and 2 bearish Shiba Inu signals as SHIB price consolidates

TL;DR

The increase in large Shiba Inu transactions and the increase in investors currently taking profits suggest that the meme coin could be headed for further gains in the near future. On the other hand, a slight drop in network growth and a 50% drop in SHIB’s burn rate indicate potential challenges to price momentum. Showing mixed signals

Shiba Inu (SHIB) has bounced back in the past week, seeing a price jump of around 9% during that period. However, it halted its progress in recent days and even flashed red on a daily basis. It is currently trading around $0.00001441 (according to CoinGecko data).

SHIB Price, Source: CoinGecko

There are two factors that hint that the meme currency could soon return to the North. The first is the increase in the large volume of SHIB transactions (where each transaction exceeds $100,000). According to IntoTheBlock, the number exceeded $20 million in the last 24 hours, which represents a 170% increase compared to the amount seen on September 23rd.

Such large transactions often indicate the involvement of whales. The increased activity of those investors with significant stakes can be seen as a positive sign by smaller players and encourage them to enter the ecosystem, thereby injecting new capital.

The next bullish sign is the “In the Money” metric, which is up 4.3%. The technical analysis tool measures the change in the number of SHIB investors currently holding paper profits. As of now, 48% of all Shiba Inu investors are in the green, while 51% are underwater. Only 1% of those exposed to the meme currency are in balance.

Conversely, two bearish elements suggest SHIB’s valuation could be set for a correction. For example, Net Network Growth (a momentum signal that gives “a pulse of the token’s true underlying network growth”) is down 0.17%.

Shiba Inu’s combustion mechanism is also on a downward trend. The burn rate has dropped by almost 50% in the last 24 hours, resulting in less than 8 million tokens sent to a null address.

The ultimate goal of the program is to reduce the huge circulating supply of SHIB and thereby drive higher prices (assuming demand remains at or increases). There are currently over 583 trillion tokens in circulation, with 410 trillion already destroyed over the past few years.

SHIB predictions

Some analysts are quite optimistic about the Shiba Inu’s future, imagining somewhat wild goals. JAVON MARKS recently argued that the asset’s uptrend seen after the US Federal Reserve cut interest rates could be the starting point for a rally to $0.000081.

Another X user, using the handle pepa, was even more bullish, stating that SHIB could wipe two zeros off its valuation in the near future based on the formation of a specific triangle shape on the price chart.

It’s important to note that for this kind of massive increase to happen, the meme coin’s market cap would need to reach $800 billion.

Bitcoin (BTC) is currently the only cryptocurrency to break this level, making this prediction highly unlikely.

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