Outside Source
TL;DR
- Analysts predict a strong rally for Shiba Inu (SHIB), supported by recent breakthroughs in resistance levels.
- Shibarium’s rapid development could also be viewed as a bullish element.
The Calm Before the Storm?
Shiba Inu (SHIB) made the headlines in mid-November when its price hit a seven-month high, while its market capitalization exceeded $17 billion. Despite losing some steam since then, the popular meme coin remains well in the green on a monthly scale and the subject of optimistic forecasts.
The X user Crypto King noted Dogecoin’s (DOGE) solid performance as of late, assuming that its biggest rival “is following next.” Recall that the largest meme coin experienced a whopping 215% price increase in the last 30 days.
Not long ago, Ali Martinez also made a bullish prediction. He suggested that SHIB’s valuation could spike by double digits if it surpasses the $0.000025 resistance. Hours later, the meme coin crossed the depicted mark and is currently positioned well above it.
Martinez further claimed that almost 1.7 trillion SHIB tokens had been withdrawn from exchanges on a 24-hour scale at one point last week. “The last time we saw a similar spike, Shiba Inu surged 62% in price,” he added.
According to CryptoQuant, the SHIB supply stored at exchanges has been on a significant downfall in the last several months. Data shows that the figure has dropped to a three-year low.
Shifting from centralized platforms toward self-custody methods could be interpreted as a bullish sign since it reduces the immediate selling pressure.
Shibarium’s Progress
Another factor signaling Shiba Inu’s potential rally in the near future is the advancement of its layer-2 scaling solution – Shibarium.
Most recently, it blasted through another major milestone, with the number of processed blocks surpassing 8 million. Prior to that, total transactions exceeded 400 million.
Shibarium is specifically designed to foster the development of the Shiba Inu ecosystem by lowering transaction fees, improving speed, and enhancing scalability. It underwent some key developments during its relatively short existence of over a year. For instance, it adopted a burning mechanism whose ultimate goal is to reduce the tremendous circulating supply of SHIB, thus potentially making it more valuable.
For more updates on the ecosystem, make sure to check out our Shibarium news.
This article first appeared at CryptoPotato
