Shiba Inu’s price faced a 3% dip recently as the cryptocurrency market took a hit due to the US government moving $2 billion worth of its bitcoin holdings to another address. Despite this setback, there are some indicators within the Shiba Inu ecosystem that suggest a potential rally might be on the horizon. One significant metric that has seen a surge is the burn rate, with a remarkable increase of over 7,000% on a daily scale. This led to 2.3 million tokens being sent to a null address. Although the USD equivalent may not be substantial, continued efforts in reducing the circulating supply could drive the price up if demand remains steady or increases.
Whale Activity
Another positive sign is the rise in whale activity for SHIB. Aggregated daily volume for transactions exceeding $100K has seen a spike of 430%, totaling over $32 million. Additionally, daily active addresses have also shown an increase. Furthermore, the SHIB exchange netflow data indicates that outflows have been surpassing inflows in the past month, suggesting a move towards self-custody methods over centralized platforms. This shift is viewed as bullish for the price of the meme coin as it helps alleviate immediate selling pressure.
Conflicting Analyst Predictions
While some analysts are optimistic about Shiba Inu’s potential rally, others have a more bearish outlook. One analyst pointed out a macro Hidden Bullish Divergence with SHIB’s RSI, hinting at a potential full recovery and a rally that could push the price up to $0.0000456, marking a 171% increase from the current valuation. However, there is also a pessimistic viewpoint suggesting that SHIB may drop to $0.000015 if it fails to hold above the major resistance level of $0.000017, which is the current trading price.
The recent price dip experienced by Shiba Inu may have been a temporary setback as various metrics indicate the potential for a rally in the near future. Factors such as the burn rate, whale activity, and exchange netflow all point towards a positive trajectory for the meme coin. However, conflicting analyst predictions highlight the uncertainty in the market and the importance of closely monitoring key indicators to gauge the future price movements of Shiba Inu.