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Sunday, July 14, 2024

Four Factors Indicating a Potential Shiba Inu (SHIB) Bull Run Incoming

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  • Some important elements indicate a potential upswing for Shiba Inu in the short term.
  • Developments in SHIB’s layer-2 blockchain solution and a resurgence of the meme coin sector could support this rally.

Is it Time for a SHIB Rally?

Shiba Inu (SHIB), similar to many other cryptocurrencies, has underperformed in the past several days, with its price plunging by 3% on a two-week scale (per CoinGecko’s data). However, some essential metrics and factors hint that the correction might be near its end.

According to CryptoQuant, SHIB exchange netflow has been positive only once in the past eight days. Shifting from centralized exchanges to self-custody methods is considered bullish since it reduces the immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant

The asset’s burning program could also play a role. As CryptoPotato reported, the burn rate skyrocketed on multiple occasions in the previous weeks, with over 9 billion tokens destroyed since the beginning of 2024.

The mechanism aims to reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable in time.

Earlier this week, the team behind Shibarium (Shiba Inu’s layer-2 blockchain solution) introduced an important update, which is designed to reduce the burden of manual token burning and automate the entire system.

According to some experts, further advancement of the L2 scaling solution might also fuel SHIB’s possible upswing. Launched in August last year, Shibarium aims to foster the growth of the meme coin’s ecosystem by reducing transaction fees and improving speed. More details about the feature can be found in the video below:

Benefiting From a Meme Coin Resurgence

Another key factor that could propel a SHIB rally could be a potential revival of the meme coin sector. Assets of that type sometimes follow each others’ steps, and currently, there are quite a lot situated well in the green.

This is especially true for meme coins that are built on Solana, which have seen a substantial upswing throughout the past weeks.

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