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.

Shiba Inu (SHIB) might be preparing for another price explosion, at least according to some technical analysis.

Fresh Price Target?

After a September to remember, SHIB’s price performance in October was underwhelming to say the least. The meme coin’s price declined throughout the majority of the month, largely mirroring the broader market.

However, Monday brought a change in fortune, with SHIB’s price rising by 4% amid a broader recovery in the meme coin sector. One X user that goes by the name Yoddha believes that this could be the start of something bigger.

According to the analyst, SHIB’s price has formed a triangular pattern, which could lead to a 130% rally if the token manages to break out of the formation to the upside.

Some on-chain metrics also appear to be supporting this bullish thesis. The Shiba Inu burn rate exploded by 550% on a daily basis, with 5.1 million SHIB tokens being sent to a null address. This program aims to reduce the massive circulating supply of SHIB, making the token scarcer and potentially more valuable over time (if demand doesn’t decline).

The Large Transactions metric, which showcases the number of transactions that exceed $100,000, also saw a surge of 8% over the last 24 hours. This signals an increase in whale activity, which could serve as a vote of confidence and help attract more investors (and capital) into the ecosystem.

Shibarium Update

Another key factor that could contribute to a potential increase in SHIB’s price is the continued development of Shibarium, a layer-2 scaling solution for the Shiba Inu ecosystem.

Recently, the protocol hit a milestone by processing 7 million blocks, while the total transactions are approaching 420 million. However, Shibarium has seen a stall in its progression, indicating a lower utilization of the network.

For the latest on the ecosystem, check out our Shibarium news.

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