Shiba Inu (SHIB) has recently faced a decline in its value, dropping by 6% on a weekly scale and 20% in a month, amidst a broader correction in the cryptocurrency market. However, this negative trend has caught the attention of many analysts who believe that a significant upswing is imminent.
Notable crypto influencers like Rekt Capital and Jake Gagain have highlighted SHIB’s potential for a strong rebound. Rekt Capital mentioned that SHIB’s price has reached a critical level from early 2022, indicating the possibility of a triple-digit price surge if it overcomes current resistance levels. Additionally, Crypto Sheriff suggested a potential 350% price rally following a recent breakout in SHIB.
Several factors point towards a bullish outlook for Shiba Inu, including its exchange netflow turning negative, which signifies a shift from centralized exchanges to self-custody methods, reducing selling pressure. Furthermore, advancements in the Shibarium layer-2 scaling solution and a significant increase in SHIB’s burn rate indicate a positive trajectory for the meme coin.
Shibarium, the layer-2 scaling solution for Shiba Inu, has seen substantial progress with the number of total blocks exceeding 4 million, leading to a resurgence in daily transactions. Additionally, the burn rate of SHIB tokens surged by almost 50,000%, resulting in millions of tokens being removed from circulation. This mechanism aims to reduce the circulating supply of SHIB, potentially increasing its scarcity and value in the future.
Despite the recent price drop, Shiba Inu (SHIB) shows promise for a significant rebound in the near future based on favorable technical signals and positive developments in its ecosystem. Investors and traders closely monitoring these key factors may benefit from a potential surge in SHIB’s price, offering an opportunity for gains in the volatile cryptocurrency market.