Shiba Inu (SHIB) has experienced a notable price rally over the past week, rising approximately 9%. However, its momentum has recently stalled, and the token is currently trading at around $0.00001441, according to CoinGecko.
Several indicators suggest that SHIB may resume its upward trend. One key factor is the spike in large SHIB transaction volumes, particularly those exceeding $100,000. According to IntoTheBlock, the volume has surged past $20 million in the last 24 hours, marking a 170% increase from September 23. This activity often reflects the interest of whale investors, whose involvement can inspire confidence among smaller traders and potentially lead to increased capital inflow.
Another positive sign is the "In the Money" metric, which has increased by 4.3%. This metric reveals that 48% of SHIB investors are currently in profit, while 51% are at a loss, with only 1% breaking even. The rise in this metric indicates a favorable sentiment among existing holders.
Despite these bullish indicators, there are bearish signals that could suggest a potential correction. Net Network Growth, a measure of the true growth of SHIB’s underlying network, has declined by 0.17%. Additionally, the token’s burn rate has dropped nearly 50% over the past 24 hours, resulting in fewer tokens being sent to a null address. This decrease in burning activity may hinder efforts to reduce SHIB's circulating supply, which currently exceeds 583 trillion tokens.
Analysts hold varied predictions for SHIB's future. Some are optimistic, with JAVON MARKS suggesting that a rally could push the token to as high as $0.000081 following the US Federal Reserve's interest rate cuts. Another user on X, known as pepa, speculated that SHIB might erase two zeros from its current valuation based on technical chart formations.
However, achieving such a surge would require SHIB's market capitalization to reach around $800 billion—a figure currently surpassed only by Bitcoin (BTC), making this scenario less likely.
As Shiba Inu navigates these mixed signals, traders and investors will be watching closely for signs of further movement in the meme coin's price.
September 2024, Cryptoniteuae