Shiba Inu (SHIB) may be poised for a significant rally as various on-chain indicators suggest a positive trend for the meme cryptocurrency. These indicators highlight the daily transactions taking place on the layer-2 platform Shibarium, implying a resurgence in Shiba Inu’s adoption.
Shiba Inu Could Experience a Major Surge With These Positive Indicators
A notable price increase may be imminent for the meme token, supported by optimistic indicators such as the rise in daily transactions on Shibarium. Data from Shibariumscan reveals that Shibarium recorded 11,360 daily transactions on September 19, a remarkable jump from 3,090 the day before. This figure represents the highest activity seen in over a month as network engagement has remained low recently.
This rise in Shibarium’s daily transaction volume indicates that investors are returning to the Shiba Inu ecosystem, which could catalyze a price surge for the token. Furthermore, the increasing daily transactions align with the Fed rate cut, heightening investors’ confidence to invest more into riskier assets like SHIB.
Consequently, this could enhance the adoption of the Shibarium network, with daily transactions expected to continue their upward trend. An increase in network activity is crucial as it will likely result in more Shiba Inu burns, ultimately affecting the coin’s price by reducing the circulation supply.
The layer-2 platform has already established an automatic burn system, where a portion of the transaction fees are converted into SHIB and burned. Therefore, increased network activity translates to higher transaction fees and consequently more Shiba Inu tokens burned.
The ‘In The Money’ Metric Is Also Encouraging
Another Shiba Inu metric exhibiting positive signs is the ‘In the Money’ metric, which indicates a growing number of SHIB holders are making profits. This trend is beneficial as the meme token is likely to experience diminished selling pressure, with investors feeling more secure holding when they’re in profit. Typically, those at a loss tend to sell quickly to mitigate their losses.
The In the Money metric also suggests that the meme token may face minimal resistance as it progresses on its upward trajectory. A smaller number of Shiba Inu addresses acquired the token at prices above its current valuation, suggesting little selling pressure as prices increase. Most Shiba Inu addresses bought in at the significant $0.000010 price point, which SHIB has tested multiple times and validated as support.
Can Shiba Inu Hit $0.00004?
These indicators confirm that Shiba Inu has the potential to reach $0.00004, reflecting a bullish sentiment for the meme coin. Additionally, from a technical analysis standpoint, crypto analysts such as Javon Marks have pointed out that the token appears to be on the verge of a breakout. Marks anticipates that the meme coin could appreciate to as high as $0.00008.
Simultaneously, crypto analyst Pat mentioned that the long-term charts on meme coins are beginning to appear “exceptionally promising.” He used Shiba Inu as an example, implying the token could move into the $0.00004 range if it confirms the chart deviation.
As of now, Shiba Inu is trading around $0.000014, experiencing a decline of over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
