SHIB’s Rally About to End?

Shiba Inu (SHIB) has enjoyed a solid resurgence in the past month, with its price pumping by over 40%. Currently, it trades at around $0.00001865 (per CoinGecko's data), which represents a 5% daily increase.

Shiba Inu (SHIB) has seen a recent surge in its price, rising by over 40% in the past month. This rally may be attributed to the broader revival of the cryptocurrency market, where Bitcoin (BTC) briefly soared above $68,000, and to the upswing of the meme coin niche.

However, several factors could indicate that the near future may not be entirely favorable for SHIB bulls.

First, the SHIB exchange netflow has been on the rise in recent days, according to data from Santiment. This suggests a shift from self-custody methods to centralized platforms, which could increase the immediate selling pressure.

Second, the progress of Shibarium appears to have stalled, with daily transactions on the layer-2 blockchain solution hovering below 10,000 since the beginning of the month. This is a far cry from the levels recorded at the start of the year, when new transactions were in the millions.

Shibarium is designed to foster the development of the Shiba Inu ecosystem by improving speed and enhancing scalability. Its underperformance may lead to waning investor interest and a consecutive price pullback.

Finally, the burning mechanism of SHIB is also showing signs of slowing down. The burn rate is down approximately 36% today (October 18), with only 5.7 million tokens sent to a null address.

This program aims to reduce the circulating supply of the meme coin, making it scarcer and potentially more valuable in time (should demand remain constant or go up). Conversely, when fewer tokens get burned, the supply remains high, which could hinder SHIB’s price growth.

Despite these factors, some market observers remain bullish on SHIB and expect it to chart further gains in the future. Earlier this week, content creator Jake Gagain promised to delete his X account if the meme coin’s market capitalization does not reach $100 billion.

As of now, this prediction seems far-fetched, considering that the figure needs to pump almost ten-fold to tap such a level.

Davinci Jeremie was even more bullish, envisioning an overall explosion of the meme coin niche, predicting its market cap could hit a ridiculous $1 trillion this cycle. Currently, the sector’s capitalization is standing at around $60 billion, or 6% of the depicted target.

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