Shiba Inu, a popular meme coin, experienced a 3% price dip amidst a substantial plunge in the cryptocurrency market. This drop was largely attributed to the US government’s decision to move $2 billion worth of bitcoin holdings to a new address, potentially signaling a sale. However, despite this initial setback, there are indicators suggesting a potential rally for Shiba Inu in the near future.
Positive Metrics
One of the positive indicators for Shiba Inu is the significant increase in the burn rate, which surged by over 7,000% on a daily scale. This resulted in 2.3 million tokens being sent to a null address, ultimately reducing the circulating supply of the meme coin. Additionally, whale activity for SHIB has been on the rise, with aggregated daily volume exceeding $100K transactions by 430%, amounting to over $32 million. Daily active addresses have also seen a modest increase, indicating growing interest in the coin.
Exchange Netflow and Technical Analysis
The SHIB exchange netflow has shown a trend of outflows surpassing inflows in the past 30 days, suggesting a shift towards self-custody methods and reducing immediate selling pressure on centralized platforms. Furthermore, technical analysis by some analysts points towards a potential bullish future for Shiba Inu. One user highlighted a macro Hidden Bullish Divergence with the RSI, indicating a possible full recovery and a rally to $0.0000456, a 171% increase from the current valuation. On the other hand, another user foresaw a bearish scenario with SHIB possibly falling to $0.000015 if it fails to maintain support above $0.000017.
While Shiba Inu faced a price dip due to external market factors, the uptick in positive indicators such as burn rate, whale activity, and exchange netflow suggest a potential rally in the near future. Technical analysis also provides conflicting but insightful perspectives on the coin’s future price movements. It will be interesting to see how these factors play out in the coming days and whether Shiba Inu can capitalize on the positive momentum to regain lost ground.