Shiba Inu (SHIB) Bull Run Incoming? 2 Reasons Hinting at a Potential Rally

As a seasoned crypto investor with a penchant for meme coins and a soft spot for Shiba Inus, I find myself intrigued by the recent developments in the SHIB ecosystem. The rally over the past week, propelled by bullish indicators like accumulation by large holders and an increase in investors sitting on paper profits, is certainly enticing. However, it’s not all sunshine and rainbows.TL;DR

Shiba Inu (SHIB) has increased by 14% in the past week, with bullish indicators suggesting the rally could continue.
However, signs like declining network growth and reduced whale activity indicate a possible correction ahead.

The Positive Signs
After experiencing a decline in value at the beginning of the month, Shiba Inu (SHIB) has rebounded, increasing by approximately 14% over the past week. At present, SHIB is trading around $0.000015 and boasts a market capitalization nearing $9 million, placing it as the sixteenth largest cryptocurrency in terms of value.

As reported by IntoTheBlock, there are two indicators suggesting that the current rally may persist in the coming days. One of these indicators is the concentration metric, which measures the accumulation or reduction of large investors’ positions. At present, this figure has risen by 0.15%, a development interpreted as a positive signal.
The “In-the-Money” indicator is coming up next. It represents the increase in SHIB investors currently enjoying profits on paper. In the past day, this figure has risen by nearly 4%. This surge has caused the percentage of HODLers with profits to jump to 48%. Approximately 3% of these investors could recoup their initial investment if they decide to sell their holdings, while a significant majority of 49% are still experiencing losses.

 

The Bearish Signals
As a crypto investor, I’ve noticed some indications suggesting that the meme coin could be due for a dip. A key metric, known as Net Network Growth, which measures the pulse of the true growth of the token’s underlying network, is currently decreasing by 0.22%. This could potentially signal a slowdown in the expansion of its network.
As a researcher, I’ve observed that the frequency of significant transactions, an indicator of whale engagement and action, has dipped by 0.34%. This suggests a potential downturn in their involvement with the market.
A potential downside for bullish investors could be the slowing pace of Shiba Inu’s token burning mechanism. In the last 24 hours, approximately 1.6 million tokens were transferred to an empty address, which is a decrease of 97% compared to the amount burned the previous day.
The primary intention behind the burn program is to gradually decrease the number of SHIB tokens in circulation, thereby increasing their scarcity and potential value as demand either remains consistent or grows over time.
Recently, I’ve been following the development of Shibarium, the scaling solution for Shiba Inu. They’ve implemented a mechanism analogous to theirs, called the “Burn Portal.” Interestingly, BONE tokens are integral to this process. Keep an eye on our Shibarium updates for more insights into this evolving ecosystem.