Outside Source
TL;DR
- SHIB’s price may soar soon due to technical patterns, reduced selling pressure, and increased token burns.
- However, the stalled progress of the Shibarium network may limit the meme coin’s growth prospects.
The Wild Bet
Despite being on a downfall since March this year, some analysts believe the valuation of Shiba Inu (SHIB) may rise to astonishing levels in the near future. One example is the X user pepa, who claimed the price chart has formed a specific triangular shape that could be followed by a massive resurgence if broken to the upside. Specifically, the crypto enthusiast speculated that SHIB might erase two zeros from its price.
The popular meme coin currently trades at around $0.00001328 (per CoinGecko’s data), which was roughly the same figure witnessed a week ago.
The projected rally to as high as $0.001328 would mean a whopping 10,000% increase. To reach that mark, SHIB’s market capitalization must explode to almost $800 billion. As of the moment, the only cryptocurrency whose market cap exceeds that sum is Bitcoin (BTC), meaning the forecast seems quite unlikely to happen.
However, some on-chain metrics suggest that a SHIB rally could indeed be in the cards. According to CryptoQuant, Shiba Inu exchange outflows have predominantly surpassed inflows in the past seven days, hinting at a shift toward self-custody methods. This could be viewed as a bullish factor since it reduces the immediate selling pressure.
Another element worth mentioning is the SHIB burning mechanism. Data shows that the burn rate has soared by 563% in the last week, resulting in more than 59 million tokens being sent to a null address.
The program’s ultimate goal is to trim the huge circulating supply of the meme coin, making it scarcer and possibly more valuable in time. The destroyed tokens since adopting the effort equal over 410 trillion, leaving approximately 583 trillion in circulation.
The Bearish Signal
Conversely, one factor indicating that SHIB’s price may keep trading sideways or experience a pullback is the stalled progress of Shibarium.
The layer-2 scaling solution entered the crypto space with a splash last summer, processing millions of transactions on a 24-hour scale. Lately, though, the daily transactions on the network have tumbled below 5,000. For more updates on the ecosystem, make sure to check out our Shibarium news.
Some industry participants believe the protocol’s advancement could be beneficial for SHIB’s price, meaning its stagnancy might have the opposite effect.
This article first appeared at CryptoPotato
