Is Shiba Inu (SHIB) Preparing For Price Rally?

TL;DR

Shibarium has seen a comeback, with daily transactions and active accounts increasing to substantial levels. Shiba Inu’s burn rate has exploded by nearly 7,000%, reducing supply and potentially increasing value, while the current RSI suggests the token is nearing oversold levels, hinting at a possible buying opportunity The rebirth of Shibarium

Shiba Inu’s Layer 2 blockchain solution has significantly stalled its progress in recent months. However, there has been a clear resurgence in recent days, with some leading indicators rising to early 2024 levels.

The data shows that the protocol’s daily transactions reached nearly 1.8 million on October 22, representing a daily increase of 1,300%. Active accounts have also headed north, reaching a one-year high of more than 26,000 yesterday.

Shibarium improves the scalability and transaction efficiency of the Shiba Inu ecosystem, allowing more users to adopt the platform for decentralized applications. This could increase the demand for SHIB as a utility token and thus increase its price.

Moreover, the impressive return of the protocol can increase confidence in the meme coin project, attracting new investors and a subsequent flow of new capital. For more updates on the ecosystem, check out our Shibarium News page.

Meanwhile, Shiba Inu’s price is slightly in the red today (October 23), with its market cap below $11 billion. On the other hand, the meme currency remains well in the green on a monthly basis, registering a 22% increase.

SHIB Price, Source: CoinGecko 2 Additional Bullish Factors

Shiba Inu’s combustion mechanism also indicates that SHIB’s price may rise in the short term. According to the latest data, the burn rate has increased by almost 7,000% in the last 24 hours, resulting in more than 27 million tokens sent to a null address.

The program is designed to create deflationary pressure on the meme currency, with the goal of gradually appreciating in value as supply shrinks (assuming demand remains or increases).

Last but not least, we’ll talk about the SHIB Relative Strength Index, which measures the speed and change of price movements. The momentum oscillator ranges from 0 to 100, with readings below 30 suggesting the asset is oversold and indicating a potential buying opportunity. The RSI is currently sitting slightly above this bullish mark.

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