Shiba Inu (SHIB) Might be Gearing up for a 130% Price Increase: Analyst
TL;DR
- Despite a downturn at the beginning of October, SHIB recently pumped by 4%, with some analysts predicting a potential 130% rally if key patterns are confirmed.
- Shibarium hit 7 million in processed blocks, but it has slowed its progress lately.
SHIB Eyes Another Price Explosion?
The second-largest meme coin made the headlines towards the end of September when its price spiked substantially. Recall that SHIB reached a three-month high while its market capitalization briefly soared above $12.5 billion.
Contrary to the overall expectations of a further rally, October (commonly referred to as Uptober by the community) offered pain for the bulls. Shiba Inu was among the many cryptocurrencies heading south, erasing much of the gains recorded last month.
The enhanced volatility continued in the past 24 hours, with the token pumping by 4% amid a revival of the entire meme coin realm. One person who believes a bull run might be just starting is the popular X user Yoddha.
The analyst thinks SHIBs price pattern has formed a specific triangular shape, which could be followed by a 130% rally if broken to the upside.
Some important indicators support that thesis. The Shiba Inu burn rate, for instance, has exploded by 550% on a daily scale, resulting in 5.1 million tokens sent to a null address. The programs ultimate goal is to reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable in time (assuming it is combined with a non-declining demand).
Large Transactions (a momentum oscillator that shows the number of transactions greater than $100,000) is up 8% in the last 24 hours, signaling increased whale activity. This could be interpreted as a sign of confidence and may drag additional investors (hence more capital) into the ecosystem.
Hows Shibarium Doing?
Another important element that could contribute to SHIBs potential price increase is the further progress of the layer-2 scaling solution Shibarium.
Not long ago, the protocols processed blocks hit the 7 million milestone, while total transactions are inching toward 420 million. However, Shibarium has stalled its advancement recently, signaling lower network utilization.
For more updates on the ecosystem, make sure to check out our Shibarium news.
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