3 bullish signs for Shiba Inu (SHIB) price to watch

TL;DR

Shibarium-related metrics have been heading north lately, while SHIB’s burn rate exploded by triple digits on a 24-hour scale. However, the recent shift from self-custodial methods to exchanges could be interpreted as a bearish factor for the price of the meme coin. Good news for SHIB Bulls?

The second largest meme coin has performed well over the past month, posting a 30% price increase. Despite being slightly in the red today (October 21), some important factors suggest that the recovery could continue in the short term.

SHIB Price, Source: CoinGecko

One such bullish sign is the resurgence of Shiba Inu’s layer 2 scaling solution: Shibarium. Daily transactions on the network have increased to 324,000 and 242,000 in the last two days. Such high numbers were last seen in April this year. The number of active accounts, new accounts and other metrics related to Shibarium have also skyrocketed of late.

The revival of the protocol points to greater user involvement and growing adoption and utility in the network. Investors may see this as a sign of confidence, triggering a new flow of capital into the ecosystem.

Next on the list is the Shiba Inu’s combustion mechanism. The data shows that the burn rate has skyrocketed by nearly 400% in the past 24 hours, resulting in 6.3 million tokens being destroyed. The goal of the program is to reduce the circulating supply of SHIB, making it scarcer and potentially more valuable (if demand holds steady or heads north).

There are currently over 583 trillion tokens in circulation, with 410.7 trillion already sent to a null address over the years.

The third bullish element is the meme coin sector which has been leading the gains lately. The leader, Dogecoin (DOGE), is up almost 30% weekly, while Bonk Inu (BONK) and Floki Inu (FLOKI) have also seen significant increases during this period.

It’s worth mentioning that today’s rock star is Cat in a Dogs World (MEW), which jumped by double digits and hit a new all-time high of about $0.01. This happened shortly after South Korea’s largest crypto exchange, Upbit, allowed services to be traded with the asset.

It’s not all roses and sunshine

Despite the overall bullish environment, there is a bearish factor that indicates a possible pullback in the Shiba Inu price. This is the net flow of SHIB exchange, which according to CryptoQuant, has been predominantly positive in recent days.

The development suggests that a growing number of investors may have switched from self-custody methods to centralized platforms, which in turn increases immediate selling pressure.

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