Shiba Inu's price may significantly rise due to identified technical patterns, reduced selling pressure, and increased token burns. However, the progress of the Shibarium network may limit the meme coin's growth prospects.
Potential SHIB Price Growth
Despite a decline since March, some analysts believe that Shiba Inu (SHIB) could see a significant price increase in the near future. One example is the X user pepa, who claimed that SHIB's price chart has formed a specific triangular shape that could lead to a massive resurgence if broken to the upside. The crypto enthusiast speculates that SHIB might erase two zeros from its price.
Factors Indicating Growth
Currently, SHIB is trading at around $0.00001328 (according to CoinGecko), roughly the same as a week ago. The projected rally to $0.001328 would mean a 10,000% increase. For SHIB to reach this mark, its market capitalization must surge to nearly $800 billion. At present, the only cryptocurrency with a market cap exceeding that amount is Bitcoin (BTC), making the forecast quite unlikely. However, some on-chain metrics suggest that a SHIB rally could indeed be on the horizon. According to CryptoQuant, Shiba Inu exchange outflows have predominantly surpassed inflows over the past seven days, indicating a shift towards self-custody methods. This can be viewed as a bullish factor since it reduces immediate selling pressure. Another noteworthy element is SHIB's burning mechanism. Data shows that the burn rate has increased by 563% in the last week, resulting in over 59 million tokens being sent to a null address. The goal of the burn program is to reduce the large circulating supply of the meme coin, making it scarcer and potentially more valuable over time. Since the adoption of this effort, over 410 trillion tokens have been destroyed, leaving approximately 583 trillion in circulation.
Stalled Shibarium Progress
Conversely, one factor indicating that SHIB’s price may continue to trade 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. Recently, however, daily transactions on the network have fallen below 5,000. Some industry participants believe the protocol’s advancement could be beneficial for SHIB’s price, meaning its stagnation might have the opposite effect.
In conclusion, the price of Shiba Inu could increase due to technical factors and reduced selling pressure, but the stalled progress of Shibarium presents a significant obstacle to further growth.
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