TL;DR
Shiba Inu (SHIB) has shown signs of recovery with increased token burning and higher transaction activity on the Shibarium network.However, some bearish indicators, like declining network growth and fewer investors in profit, could limit this momentum.The Odds for a SHIB Rally
The popular meme coin Shiba Inu has underperformed in the past week, witnessing a price decline of approximately 5%. However, it showed signs of a resurgence in the past 24 hours and recovered some of the losses incurred. Currently, it trades at around $0.00001349, representing a 2% increase on a daily scale.
SHIB Price, Source: CoinGeckoIts minor revival coincides with the rise of some important SHIB-related metrics. For instance, the Shiba Inu burning rate has spiked by 35% in the last 24 hours, resulting in almost 3 million tokens being destroyed.
The USD equivalent of the stash might be insignificant, but continuous efforts in that field could have a positive impact on the price of the meme coin. After all, the mechanism’s ultimate goal is to reduce the tremendous circulating supply, which, combined with a non-declining demand, should lead to a rally (according to fundamental principles of economics).
Another bullish factor could be the further advancement of the layer-2 blockchain solution Shibarium. Data shows that daily transactions on the network have soared by 60%, reaching 5,600 on September 4.
Shibarium is designed to foster the development of the Shiba Inu ecosystem by lowering transaction costs, improving speed, and enhancing scalability. It hit numerous milestones during its first year of existence, such as processing over 400 million transactions. For more updates on the ecosystem, make sure to check out our Shibarium news.
IntoTheBlock also shows an important bull signal. Specifically, this is concentration, which is calculated by the difference between the accumulation or reduction of large holders’ positions. The indicator is currently up 0.03%.
The Opposite Scenario
On the other hand, several metrics suggest that SHIB bulls might suffer further pain in the near future. One example is Net Network Growth, which is “a momentum signal that gives a pulse of the true growth of the token’s underlying network.” It is in bearish territory, down 0.20%.
The “In the Money” indicator is next on the list. It shows the change in the number of SHIB investors currently sitting on paper profits. It is down 0.42% in the past day as the total share of HODLers in the red increased to 52%.