Shiba Inu (SHIB) Bull Run Incoming? 2 reasons that hint at a possible concentration

TL;DR

Shiba Inu (SHIB) is up 14% in the past week, with bullish indicators suggesting the rally could continue. However, signs such as declining net growth and reduced whale activity point to a possible correction ahead. The positive signs

Shiba Inu (SHIB) rallied from the price collapse earlier this month, and its valuation rose 14% last week. It is currently trading around $0.000015 with a market cap of nearly $9 million, making it the 16th largest cryptocurrency.

SHIB Price, Source: CoinGecko

According to IntoTheBlock, two elements indicate that the demonstration could continue in the near future. One of them is the concentration metric, which shows the accumulation or reduction of the positions of the major holders. It has risen by 0.15%, which is interpreted as a bullish sign.

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. The metric is up nearly 4% in the last day as the total share of HODLers in the green rose to 48%. 3% of investors would break even if they decide to withdraw their deposit, while 49% remain underwater.

SHIB Signs, Source: IntoTheBlock

Bearish signals

On the other hand, there are some signs that the meme currency could be headed for a correction. Net Network Growth, a momentum signal “that gives a pulse of the actual growth of the token’s underlying network,” is down 0.22%.

The number of large transactions, which measures whale interest and activity, is also in bearish territory, down 0.34%.

Another factor that could be seen as bad news for bulls is the decrease in the Shiba Inu’s combustion mechanism rate. About 1.6 million tokens have been sent to a null address in the last 24 hours, which represents a 97% decrease compared to the number seen the previous day.

The ultimate goal of the burn program is to reduce the circulating supply of SHIB, making it scarcer and more valuable over time (assuming demand remains or increases).

Not long ago, Shibarium (Shiba Inu’s layer 2 scaling solution) adopted a similar mechanism called “Burn Portal”, with BONE tokens playing an essential role in the process. For more updates on the ecosystem, be sure to check out our Shibarium News.