Shiba Inu (SHIB) is on the verge of a significant rally as several on-chain metrics paint a promising picture for the popular meme coin. Among these metrics, daily transactions on the layer-2 network Shibarium stand out, indicating a resurgence in Shiba Inu’s adoption.
Shiba Inu Could Enjoy Major Rally With These Bullish Metrics
A substantial price surge appears to be on the horizon for Shiba Inu, fueled by bullish metrics such as the daily transactions on Shibarium. According to data from Shibariumscan, Shibarium’s daily transactions on September 19th hit 11,360, a remarkable increase from 3,090 the previous day. This figure not only marks a significant rise but also represents the highest daily transactions in over a month, breaking a period of stagnation.
This surge in daily transactions suggests that investors are re-engaging with the Shiba Inu ecosystem, potentially igniting a price rally for the meme coin. Moreover, the uptick in transactions aligns with the recent Fed rate cut, which has boosted investor confidence in allocating capital to riskier assets like SHIB.
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As Shibarium’s adoption grows, daily transactions are likely to continue their upward trajectory. Increased network activity is crucial because it leads to more Shiba Inu tokens being burned, which could positively impact the coin’s price by reducing the total supply in circulation.
The layer-2 network has already implemented an automatic burn mechanism where a portion of transaction fees is converted to SHIB and subsequently burned. Thus, heightened network activity translates into more transaction fees and more Shiba Inu tokens being removed from circulation.
The ‘In The Money’ Metric Is Also Bullish
Another bullish indicator for Shiba Inu is the ‘In the Money’ metric, which tracks the number of SHIB holders currently in profit. An increasing number of profitable holders is a positive sign, as it suggests reduced selling pressure. Investors are generally more inclined to hold onto their assets when they are in profit, whereas those experiencing losses tend to sell quickly to cut their losses.
The ‘In the Money’ metric also indicates that Shiba Inu may encounter minimal resistance as it continues its upward trend. Fewer SHIB addresses bought the coin at levels above the current price, suggesting less selling pressure as the price rises. Most SHIB addresses acquired the coin at the crucial $0.000010 price level, which SHIB has retested multiple times, confirming it as a strong support level.
Can Shiba Inu Reach $0.00004?
Given the current metrics, Shiba Inu has the potential to reach $0.00004. These metrics provide a bullish outlook for the meme coin. From a technical analysis perspective, crypto analysts like Javon Marks have pointed out that Shiba Inu looks poised for a breakout, predicting a potential rise to as high as $0.00008.
Similarly, crypto analyst Pat has observed that the higher time frame charts for meme coins are starting to look “bloody lovely.” Using Shiba Inu as a case study, he indicated that the coin could climb to the $0.00004 range if it can confirm a deviation on the chart.
At the time of writing, Shiba Inu is trading at approximately $0.000014, down over 2% in the last 24 hours, according to data from CoinMarketCap.
