Shiba Inu, a popular meme coin, saw a 3% decrease in its price recently amidst a substantial plunge in the cryptocurrency market. This drop was attributed to the US government’s decision to move $2 billion worth of bitcoin holdings to another address, sparking concerns about a potential sell-off. However, despite this setback, there are indicators within Shiba Inu’s ecosystem that suggest a potential rally on the horizon.
One of the notable metrics that point towards a positive future for Shiba Inu is the significant increase in the burn rate. The daily burn rate skyrocketed by over 7,000%, resulting in 2.3 million tokens being sent to a null address. While the USD equivalent of this burn might seem insignificant, the continuous reduction in the circulating supply of the meme coin could potentially drive up its price, assuming the demand remains stable or increases.
Another promising sign for Shiba Inu is the rise in whale activity. Aggregated daily volume for transactions exceeding $100K surged by 430%, surpassing $32 million. Additionally, daily active addresses have shown a modest increase. The SHIB exchange netflow, according to CryptoQuant, has seen more outflows than inflows in the past month, indicating a shift towards self-custody methods from centralized platforms. This shift is considered bullish as it reduces immediate selling pressure on the coin.
Some analysts view Shiba Inu’s current situation optimistically, citing a macro Hidden Bullish Divergence with its RSI as a sign of a potential full recovery. They predict a rally that could drive the price up to $0.0000456, marking a 171% increase from its current value. On the other hand, there are more bearish predictions suggesting a potential drop to $0.000015 if Shiba Inu fails to maintain key resistance levels.
The future of Shiba Inu remains uncertain, with both bullish and bearish predictions circulating among analysts. While positive indicators such as increased burn rates and whale activity signal a potential rally, the market’s volatility and external factors like government actions can still impact the coin’s price. Investors and traders are advised to carefully monitor these indicators and developments to make informed decisions regarding Shiba Inu.
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