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 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 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.
Conclusion
In conclusion, the SHIB community is abuzz with excitement over the potential for a massive price surge. While some on-chain metrics suggest a bullish outlook, the stalled progress of Shibarium may limit the meme coin’s growth prospects. As the crypto market continues to evolve, it remains to be seen whether SHIB will indeed reach the stratospheric levels predicted by some analysts.
FAQs
Q: What is Shibarium?
A: Shibarium is a layer-2 scaling solution designed to improve the scalability and efficiency of the Shiba Inu network.
Q: Why is Shibarium important for SHIB’s price?
A: Shibarium’s advancement is crucial for SHIB’s price growth, as it enables faster and cheaper transactions, which could increase adoption and drive up demand.
Q: What is the current market capitalization of SHIB?
A: As of the moment, SHIB’s market capitalization is significantly lower than the $800 billion required to reach the predicted price surge.
Q: Is the SHIB burning mechanism a bullish factor?
A: Yes, the increased burn rate and the destruction of tokens could reduce selling pressure and increase the value of SHIB in the long run.
Q: Can SHIB really erase two zeros from its price?
A: While some analysts believe it’s possible, the predicted price surge seems unlikely, given the current market conditions and the relatively low market capitalization of SHIB.
