Shiba Inu Nears Historic Surge as Investors Accumulate 770B SHIB

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Shiba Inu (SHIB)
is on the brink of a monumental surge, as investors have amassed an impressive quantity of Shiba Inu tokens in recent days. However, the
meme coin’s underlying factors
still raise red flags, as they suggest a bearish outlook for SHIB.

Shiba Inu Poised for an Historic Surge in October

Shiba Inu is on track for a significant rally this October if past trends hold true.
Data
from CryptoRank indicates that the meme coin has consistently recorded positive monthly returns in October. During the
2021 bull market
, SHIB experienced an astonishing price increase of 833% in October, along with modest gains of 10% and 6% in October 2022 and 2023, respectively.

Thus, Shiba Inu stands to gain significantly this October. Furthermore, the outlook for the wider cryptocurrency market in October is also optimistic. For example, Bitcoin has traditionally experienced its highest returns between October and December, and it is again anticipated to undergo a price rally starting in October.

Consequently, Shiba Inu’s price is likely to ascend as Bitcoin trends upward.
Data
from the
data analytics platform IntoTheBlock
indicates that the price correlation between SHIB and BTC is currently at 0.89, signifying a robust positive relationship between the two assets. This suggests that the meme coin will rise as Bitcoin sees gains.

Shiba Inu investors
are gearing up for the historic surge, as data from the
on-chain analytics firm Cryptoquant
reveals that they have accumulated 770 billion SHIB from September 23 to 24. This total reflects the outflows from exchanges during those two days, and transferring coins off exchanges indicates that investors are looking to hold long-term.

This accumulation trend among investors may play a role in the potential price surge that Shiba Inu could experience this October.

Concerns over Fundamentals Persist

However, Shiba Inu’s fundamentals present a troubling outlook, painting a bearish picture for the meme asset.
Data
from Shiba Inu burn tracker Shibburn indicates that the
burn rate of the coin
has decreased by over 90% in the last 24 hours. Additionally, there has been a 61% drop in the amount of tokens burned over the past week.

Another bearish indicator is the low level of network activity on
Shibarium
.
Data
from the Shibarium explorer shows that
the daily transactions
on the layer-2 network have remained stagnant and under 10,000. A peak of 11,360 transactions occurred on September 19, but fell to 8,000 the next day.

The low activity levels on
Shibarium
have also led to a decline in Shiba Inu’s burn rate. Standard transaction fees on Shibarium are typically converted to SHIB and burned. However, with such disinterest in the layer-2 network, there’s a cap on how many SHIB tokens can be burned.

As of now, Shiba Inu is trading at approximately $0.000014, reflecting an increase of more than 3% in the last 24 hours, according to
data
from CoinMarketCap.