Shiba Inu (SHIB) Sees Uptick Amid Bullish Signals

The popular meme cryptocurrency Shiba Inu (SHIB) has seen a 2% price increase in the last 24 hours, trading at $0.000017 as of October 9, 2024. This recent uptick comes amidst several positive indicators for the token, including decreased exchange reserves and increased burning activity. However, the project’s layer-2 solution, Shibarium, has shown signs of slowing down.

SHIB Exchange Reserves Drop as Burn Rate Soars

One of the key factors contributing to SHIB’s recent price movement is the significant decrease in exchange reserves. According to data from CryptoQuant, SHIB holdings on centralized exchanges have been steadily declining over the past year. This trend suggests a shift towards self-custody methods among SHIB holders, potentially reducing immediate selling pressure on the token.

Simultaneously, the SHIB burning mechanism has kicked into high gear, with the burn rate surging by over 400% in the last 24 hours. Nearly 3 million tokens have been sent to a null address, effectively removing them from circulation. While the USD equivalent of this burn may be relatively small, consistent burning efforts could make SHIB scarcer and potentially more valuable in the long run, assuming demand remains stable or increases.

Shibarium Activity Slows Despite Overall SHIB Momentum

Despite the positive price action and burning activity, Shibarium, Shiba Inu’s layer-2 blockchain solution, has shown signs of struggle. Daily transactions on the network have dropped below 10,000 since the beginning of October, a significant decrease from the millions of transactions recorded at the start of 2024.

Shibarium was designed to enhance Shiba Inu’s ecosystem by improving scalability, reducing transaction fees, and increasing speed. The recent decline in activity raises questions about the project’s current adoption and impact on SHIB’s overall ecosystem growth.

Shiba Inu (SHIB) Price Analysis: Bullish Signals Emerge Despite Recent Volatility

As of October 9, 2024, Shiba Inu (SHIB) is trading at approximately $0.000017, marking a 2% increase in the last 24 hours. This recent uptick is part of a broader positive trend, with SHIB’s valuation surging by nearly 35% over the past 30 days.

Short-Term Bullish Indicators

1. Decreasing Exchange Reserves: CryptoQuant data shows a significant decline in SHIB holdings on centralized exchanges over the past year. This trend often signals reduced selling pressure and can be interpreted as a bullish indicator.
2. Increased Burn Rate: The SHIB burn rate has spiked by over 400% in the last 24 hours, with almost 3 million tokens being sent to a null address. While the immediate impact on price may be minimal, consistent burning could contribute to long-term price appreciation.
3. Large Transactions Increase: The Large Transactions metric, which tracks transactions over $100,000, has jumped by 5.5% daily according to IntoTheBlock. This suggests increased activity from whale investors, often considered a bullish sign.

SHIB/USD Technical Analysis

The recent price action has seen SHIB break out of a downtrend that began in March 2024. After surging by more than 40% in late September to reach the $0.000021 range, SHIB experienced a correction down to $0.00001553. This correction is viewed by some analysts as a successful backtest of the breakout, potentially setting the stage for further gains.

Resistance and Support Levels

• Immediate Resistance: $0.00002266 (approximately 26% above the current price)
• Next Major Resistance: $0.0000312 (last seen in mid-2023)
• Strong Support: $0.00001104

Challenges and Considerations

While the short-term indicators appear bullish, it’s important to note that Shibarium, SHIB’s layer-2 solution, has seen a significant drop in daily transactions. This decline in network activity could potentially impact long-term growth and adoption.

Looking Ahead: SHIB’s Long-Term Prospects

While short-term price movements and network activity fluctuate, some analysts remain optimistic about SHIB’s long-term potential. Predictions from platforms like Changelly and Telegaon suggest that SHIB could potentially reach the $0.05 mark sometime between 2035 and 2050, although such projections should be taken with caution given the volatile nature of cryptocurrency markets.