An epic SHIB bull run is forecast, but troubling signs are emerging

TL;DR

The price of SHIB may rise soon due to technical patterns, reduced selling pressure and increased chip burns. However, the stagnant progress of the Shibarium network may limit the meme currency’s growth prospects. The wild bet

Despite being down since March of this year, some analysts believe that the valuation of Shiba Inu (SHIB) may rise to surprising levels in the near future. One example is user X Pepa, who claimed that the price chart has formed a specific triangular shape that could be followed by a massive retracement if broken to the upside. Specifically, the crypto enthusiast speculated that SHIB could erase two zeros from its price.

The popular meme coin is currently trading around $0.00001328 (according to data from CoinGecko), which was roughly the same figure seen a week ago.

SHIB Price, Source: CoinGecko

The expected rally to $0.001328 would mean a 10,000% increase. To reach that mark, SHIB’s market cap needs to explode to nearly $800 billion. At the moment, the only cryptocurrency whose market capitalization exceeds this sum is Bitcoin (BTC), which means that the prediction seems unlikely to happen.

However, some metrics on the chain suggest that a SHIB rally could be on the cards. According to CryptoQuant, Shiba Inu exchange exits have mostly outpaced inflows in the past seven days, hinting at a shift towards self-custody methods. This could be seen as a bullish factor as it reduces immediate selling pressure.

Another item worth mentioning is the SHIB burn mechanism. The data shows that the burn rate has skyrocketed by 563% in the last week, resulting in more than 59 million tokens sent to a null address.

The ultimate goal of the program is to cut the huge circulating supply of meme currency, making it scarcer and possibly more valuable over time. Tokens destroyed since the effort was adopted equate to more than 410 trillion, leaving approximately 583 trillion in circulation.

The bearish signal

Conversely, one factor that indicates SHIB’s price may continue to trade sideways or experience a pullback is Shibarium’s stagnant progress.

The Layer 2 scaling solution entered the crypto space with a splash last summer, processing millions of transactions on a 24-hour scale. Lately, however, daily transactions on the network have fallen below 5,000. For more updates on the ecosystem, be sure to check out our Shibarium News.

Some industry participants believe that the advancement of the protocol could be beneficial to the price of SHIB, meaning that its stagnation could have the opposite effect.

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