3 warning signs for Shiba Inu (SHIB) price.

TL;DR

Shiba Inu (SHIB) has seen a notable price increase recently, but the stagnation in Shibarium’s progress and other factors indicate possible downward pressure. Despite these warning signs, some analysts remain very optimistic, making bold predictions that SHIB’s market capitalization could reach extreme levels. SHIB rally about to end?

Shiba Inu (SHIB) has enjoyed a solid resurgence over the past month, with its price increasing by more than 40%. It is currently trading at around $0.00001865 (according to CoinGecko data), which represents a daily increase of 5%.

SHIB Price, Source: CoinGecko

Factors that may have contributed to SHIB’s rally include the general renaissance of the cryptocurrency market (where Bitcoin (BTC) briefly soared above $68,000) and the rise of the entire meme coin niche.

However, some elements suggest that the near future may offer some pain for Shiba Inu bulls. The first component is the net SHIB exchange flow which has increased in recent days. This suggests a shift from self-custodial methods to centralized platforms, which in turn increases immediate selling pressure.

Next on the list is Shibarium’s stalled progress. Daily transactions on the Layer 2 blockchain solution have been below 10,000 since the beginning of the month, which is just a fraction of the number recorded earlier this year, when new transactions were in the millions.

Shibarium is designed to foster the development of the Shiba Inu ecosystem by improving speed and improving scalability. As such, its underperformance may lead to a decline in investor interest and a consequent pullback in prices. For more updates on the ecosystem, check out our Shibarium news.

Last but not least, we will focus on the combustion mechanism of SHIB. The burn rate is down about 36% today (October 18th), with only 5.7 million tokens sent to a null address.

The ultimate goal of the program is to reduce the circulating supply of meme currency, making it scarcer and potentially more valuable over time (if demand remains constant or increases). Conversely, when fewer tokens are burned, the supply remains high, which could hinder SHIB price growth.

Wild SHIB Price Predictions

Contrary to the factors mentioned above that hint at a possible pullback, some market watchers expect SHIB to have more gains going forward.

Earlier this week, content creator Jake Gagain promised to delete his X account if the meme coin’s market cap doesn’t reach $100 billion. As of now, the forecast seems quite unlikely, considering that the number has to multiply almost tenfold to reach this level.

Davinci Jeremie was even more optimistic. He envisioned a general explosion of the meme coin niche, predicting that its market cap could reach the ridiculous $1 trillion mark this cycle. Currently, the sector’s capitalization is around $60 billion, or 6% of the represented target.

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