Is Shiba Inu (SHIB) Preparing for Price Rally?

TL;DR

• Shibarium has seen a comeback, with daily transactions and active accounts soaring to substantial levels.
• Shiba Inu’s burn rate has exploded by nearly 7,000%, which reduces supply and could drive up value, while the current RSI suggests the token is approaching oversold levels, hinting at a potential buying opportunity.

Shibarium’s Revival

Shiba Inu’s layer-2 blockchain solution has significantly stalled its progress over the past several months. However, there has been an evident resurgence in the last few days, with some important indicators rising to early 2024 levels.

Data shows that daily transactions on the protocol reached almost 1.8 million on October 22, representing a 1,300% daily increase. Active accounts have also headed north, hitting a one-year high of over 26,000 yesterday.

Shibarium improves the scalability and transaction efficiency of the Shiba Inu ecosystem, allowing more users to adopt the platform for decentralized applications. This might increase the demand for SHIB as a utility token, hence boosting its price. 

In addition, the protocol’s impressive comeback may boost confidence in the meme coin project, attracting new investors and a subsequent fresh flow of capital. For more updates on the ecosystem, check out our Shibarium news page.

Meanwhile, Shiba Inu’s price is slightly in the red today (October 23), with its market capitalization plunging below $11 billion. On the other hand, the meme coin remains well in the green on a monthly scale, registering a 22% spike.

2 Additional Bullish Factors

Shiba Inu’s burning mechanism also indicates that SHIB’s price may pump in the short term. According to the latest data, the burn rate has exploded by almost 7,000% in the past 24 hours, resulting in more than 27 million tokens sent to a null address.

The program is designed to create deflationary pressure on the meme coin, aiming for a gradual value appreciation as the supply reduces (assuming demand stays the same or rises).

Last but not least, we will touch upon the SHIB Relative Strength Index, which measures the speed and change of price movements. The momentum oscillator varies from 0 to 100, with readings below 30 suggesting that the asset is oversold and signaling a possible buying opportunity. Currently, the RSI is hovering slightly above that bullish mark.