Good News for SHIB Bulls?

The second-largest meme coin has performed quite well in the past month, registering a 30% price increase. Despite being slightly in the red today

Good News for SHIB Bulls? Cryptocurrency News and Prices (cryptonewsland.com)

The second-largest meme coin performed well in the past month, registering a 30% price increase. Despite being slightly in the red today (October 21), some important factors suggest that the rally could continue in the short term.

One of those bullish signals is the resurgence of Shiba Inu’s layer-2 scaling solution – Shibarium. Transactions on the network exploded to 324,000 and 242,000 in the past two days, respectively. Such high figures were last observed in April this year.

The number of active accounts, new accounts, and other Shibarium-related metrics also soared in the past several days. The protocol’s revival hints at increased user engagement and growing adoption and utility within the network. Investors might see this as a sign of confidence, triggering a fresh flow of capital toward the ecosystem.

Next on the list is Shiba Inu’s burning mechanism. Data shows that the burn rate soared by almost 400% in the past 24 hours, with 6.3 million tokens burned. The program aims to reduce the circulating supply of SHIB, making it scarcer and potentially more valuable (if demand remains constant or heads north).

Currently, there are over 583 trillion tokens in circulation, out of which 410.7 trillion were sent to a null address over the years.

The third bullish element is the meme coin sector, which has been at the forefront of gains lately. The leader, Dogecoin (DOGE), is up almost 30% weekly, while Bonk Inu (BONK) and Floki Inu (FLOKI) also saw significant increases for that period.

It is worth mentioning that today’s rock star is Cat in a Dogs World (MEW), which jumped by double digits and hit a new all-time high of approximately $0.01. This happened shortly after the biggest South Korean crypto exchange, Upbit, allowed trading services with the asset.

It’s Not All Roses and Sunshine

Despite the overall bullish environment, there is one bearish factor that signals a possible pullback for Shiba Inu’s price. This is the SHIB exchange netflow, which – according to CryptoQuant – was predominantly positive in the past several days.

The development suggests that a growing number of investors might have switched from self-custody methods toward centralized platforms, which, in turn, increases the immediate selling pressure.

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