TL;DR
- Shiba Inu’s spike in large transactions and increase of investors currently in profit suggest the meme coin could be headed for further gains in the near future.
- On the other hand, slight drop in network growth and a 50% decline in SHIB’s burn rate indicate potential challenges ahead for price momentum.
Showing Mixed Signals
Shiba Inu (SHIB) has been rallying in the past week, witnessing a price jump of around 9% for that period. However, it stalled its progress in the past few days and even flashed red on a daily scale. Currently, it trades at around $0.00001441 (per CoinGecko’s data).
There are two factors hinting that the meme coin may soon head north again. The first is the spike of large SHIB transactions volume (where each transaction exceeds $100,000). According to IntoTheBlock, the figure surpassed $20 million in the past 24 hours, representing a 170% increase compared to the amount observed on September 23.
Such large transactions often indicate the involvement of whales. Increased activity from those investors with significant holdings can be seen as a positive sign from smaller players and encourage them to enter the ecosystem, hence injecting fresh capital.
The next bullish sign is the “In the Money” metric, which is up 4.3%. The technical analysis tool measures the change in the number of SHIB investors currently sitting on paper profits. As of now, 48% of all Shiba Inu investors are in the green, while 51% are underwater. Only 1% of those exposed to the meme coin are break-even.
Conversely, two bearish elements suggest that SHIB’s valuation might be poised for a correction. For instance, Net Network Growth (a momentum signal that gives “a pulse of the true growth of the token’s underlying network”) is down 0.17%.
Shiba Inu’s burning mechanism is also on a downtrend. The burn rate has fallen by almost 50% in the past 24 hours, resulting in less than 8 million tokens sent to a null address.
The program’s ultimate goal is to reduce the huge circulating supply of SHIB and thus propel a price increase (assuming demand keeps its levels or rises). Currently, there are over 583 trillion tokens in circulation, with 410 trillion already destroyed over the past few years.
SHIB Predictions
Some analysts are quite optimistic about Shiba Inu’s future, envisioning somewhat wild targets. JAVON MARKS recently argued that the asset’s uptrend witnessed after the US Federal Reserve lowered interest rates could be the starting point for a rally to as high as $0.000081.
Another X user, using the handle pepa, was even more bullish, claiming SHIB might erase two zeroes from its valuation in the near future based on the formation of a specific triangular shape on the price chart.
It’s important to note that for this kind of massive surge to happen, the market capitalization of the meme coin would need to hit around $800 billion.
Currently, Bitcoin (BTC) is the only cryptocurrency that exceeds that level, making this prediction very improbable.
The post 2 Bullish and 2 Bearish Shiba Inu Signals as the SHIB Price Consolidates appeared first on CryptoPotato.