3 Bullish Shiba Inu Signs as SHIB Price Aims for Bounce: Details

TL;DR

Shiba Inu (SHIB) has shown signs of recovery with increased token burning and increased transaction activity on the Shibarium network. However, some bearish indicators, such as slowing network growth and fewer profit investors, could limit this momentum. The odds for a SHIB rally

The popular Shiba Inu meme coin has underperformed in the past week, witnessing a price decline of approximately 5%. However, it showed signs of resurgence in the last 24 hours and recovered some of the losses incurred. It is currently trading around $0.00001349, representing a 2% increase on a daily basis.

SHIB Price, Source: CoinGecko

Its minor revival coincides with a rise in some important SHIB-related metrics. For example, Shiba Inu’s burn rate has increased by 35% in the last 24 hours, resulting in the destruction of nearly 3 million tiles.

The USD equivalent of storage may be insignificant, but continued efforts in this field could have a positive impact on the price of the meme currency. After all, the ultimate goal of the mechanism is to reduce the huge circulating supply, which, combined with non-declining demand, should lead to an upswing (according to fundamental principles of economics).

Another bullish factor could be the further advancement of the Shibarium layer 2 blockchain solution. Data shows that daily transactions on the network have soared by 60%, reaching 5,600 on September 4.

Shibarium is designed to foster the development of the Shiba Inu ecosystem by reducing transaction costs, improving speed and improving scalability. It achieved numerous milestones in its first year of existence, including processing over 400 million transactions. For more updates on the ecosystem, be sure to check out our Shibarium News.

IntoTheBlock is also showing a major bull signal. Specifically, it is about concentration, which is calculated by the difference between the accumulation or reduction of the positions of the major holders. The indicator is currently up 0.03%.

The opposite scenario

On the other hand, several metrics suggest SHIB bulls could be in for more pain in the near future. An example is Net Network Growth, which is “a momentum signal that gives a pulse of the true growth of the token’s underlying network.” It is in bearish territory, 0.20%.

The “In the Money” indicator is next on the list. It shows the change in the number of SHIB investors who currently have paper profits. It is down 0.42% in the last day as the total share of HODLers in the red increased to 52%.

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