Shiba Inu (SHIB) could be preparing for a 130% price increase: analyst

TL;DR

Despite the drop in early October, SHIB recently rose 4%, with some analysts predicting a potential rally of 130% if key patterns are confirmed. Shibarium reached 7 million blocks processed, but has slowed its progress lately. SHIB Eyes Another Price Explosion?

The second largest meme coin hit the headlines in late September when its price increased substantially. Recall that SHIB hit a three-month high while its market capitalization briefly soared above $12.5 billion.

Contrary to general expectations of another rally, October (commonly referred to as “Uptober” by the community) delivered pain for the bulls. Shiba Inu was among the many cryptocurrencies heading south, erasing much of the gains recorded last month.

SHIB Price, Source: CoinGecko

Enhanced volatility has continued in the past 24 hours, with the token rising 4% amid a resurgence across the meme coin realm. One person who believes a bull run may be starting is popular X user Yoddha.

The analyst believes that SHIB’s price pattern has formed a specific triangle shape, which could be followed by a 130% rise if broken to the upside.

Some important indicators support this thesis. Shiba Inu’s burn rate, for example, has increased by 550% on a daily basis, resulting in 5.1 million tokens sent to a null address. The ultimate goal of the program is to reduce the huge circulating supply of SHIB, making it scarcer and potentially more valuable over time (assuming it is coupled with unabated demand).

Large trades (a momentum oscillator that shows the number of trades over $100,000) have increased by 8% in the past 24 hours, indicating increased whale activity. This could be interpreted as a sign of confidence and may draw additional investors (thus more capital) into the ecosystem.

How is Shibarium?

Another important element that could contribute to SHIB’s potential price increase is further progress on the Shibarium layer 2 scaling solution.

Not long ago, the processed blocks of the protocol reached the milestone of 7 million, while the total transactions are approaching 420 million. However, Shibarium has halted its progress recently, indicating lower network usage.

For more updates on the ecosystem, be sure to check out our Shibarium News.

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