TL;DR
- Shiba Inu (SHIB) may experience a renewed bull run due to several factors.
- Its recent decline coincides with the overall market decline following Donald Trump’s inauguration.
What Might Ignite a Rally?
Shiba Inu (SHIB) experienced a significant pump in mid-January, reaching a local peak of around $0.00002485. Since then, it has been on a downfall, currently trading at roughly $0.000021.
Positive Factors
One such factor is the burning mechanism, which aims to reduce SHIB’s circulating supply and potentially make it more valuable through scarcity. Over the past 24 hours, the burn rate has exploded by 500%, resulting in approximately 2.8 million tokens sent to a null address.
Another factor is the uptrend of TREAT. The Shiba Inu-related coin, designed to enhance utility and engagement across the network’s projects and serve as a reward token within the ecosystem, officially saw the light of day on January 14.
The price of TREAT has been underperforming in the past week, but it has soared by over 50% in the last 24 hours, rising to as high as $0.013. It retraced to the current $0.0082 in the following hours but remains in green territory.
Lastly, the exchange netflow of SHIB has been negative for the past four days, signaling a shift from centralized exchanges toward self-custody methods, which could be considered bullish since it reduces the immediate selling pressure.
Bonus: DOGE’s Influence
It is worth mentioning that SHIB’s potential short-term rally could also be propelled by Dogecoin’s price performance. DOGE is the undisputed leader in the meme coin niche, and its rivals sometimes mimic its price swings.
DOGE’s valuation briefly exploded by double digits after the Elon Musk-led Department of Government Efficiency (D.O.G.E.) featured the meme coin’s logo on its official website.
It will be interesting to see whether the asset will thrive under the new US presidency and how it will affect the rest of the memes.
Conclusion
Despite SHIB’s recent decline, several factors suggest it could witness a renewed bull run in the near future. The burning mechanism, TREAT’s uptrend, and the negative exchange netflow could all contribute to a potential price increase.
FAQs
Q: What is the current price of SHIB?
A: The current price of SHIB is approximately $0.000021.
Q: What is the purpose of the burning mechanism in SHIB?
A: The burning mechanism aims to reduce SHIB’s circulating supply and potentially make it more valuable through scarcity.
Q: What is TREAT, and how does it relate to SHIB?
A: TREAT is a Shiba Inu-related coin designed to enhance utility and engagement across the network’s projects and serve as a reward token within the ecosystem.
Q: How has DOGE’s recent price performance affected SHIB’s potential price rally?
A: DOGE’s brief price explosion could have a positive impact on SHIB’s potential short-term price rally, as rivals sometimes mimic DOGE’s price swings.
