Shiba Inu (SHIB) could soon enjoy a massive rally as several on-chain metrics paint a bullish picture for the meme coin. These metrics include the daily transactions on the layer-2 network Shibarium, which indicates that Shiba Inu’s adoption is again rising.
Shiba Inu Could Enjoy Major Rally With These Bullish Metrics
A significant price surge could be on the horizon for the meme coin with bullish metrics like the daily transactions on Shibarium. Data from the Shibariumscan shows that Shiabrium’s daily transactions on September 19 hit 11,360, a significant increase from 3,090 the previous day. The 11,360 daily transactions recorded on that day also represent the highest figure in over a month, as network activity has remained stagnant for a while now.
However, this surge in Shibarium’s daily transactions indicates that investors are returning to the Shiba Inu ecosystem, which could help spark this price surge for the meme coin. Moreover, the rise in daily transactions coincides with the Fed rate cut, which has boosted investors’ confidence in allocating more capital to risk assets like SHIB.
As such, this could lead to greater adoption of the Shibarium network, with daily transactions likely to keep skyrocketing. A rise in network activity is also significant as this would lead to more Shiba Inu burns, ultimately impacting the meme coin’s price as more coins are removed from circulation.
The layer-2 network has already implemented an automatic burn mechanism whereby some of the network’s transaction fees are converted to SHIB and burned. Therefore, increased network activity means more transaction fees and more Shiba Inu tokens burned.
The ‘In The Money’ Metric Is Also Bullish
Another Shiba Inu metric that has turned bullish is the ‘In the Money’ metric, with the number of SHIB holders in profit currently rising. This is positive as the meme coin could face less selling pressure, with investors more confident about holding when they are in profit. Holders running at a loss are always quick to sell to cut their losses.
The In the Money metric also shows that the meme coin could face minimal resistance as it continues its upward trend. Fewer Shiba Inu addresses bought the meme coin at levels above its current price, indicating it should face little selling pressure as its price rises. Most Shiba Inu addresses purchased the coin at the crucial $0.000010 price level, which SHIB has retested multiple times and confirmed as support.
Can Shiba Inu Reach $0.00004?
These metrics prove that Shiba Inu can reach $0.00004 as they provide a bullish outlook for the meme coin. Moreover, from a technical analysis perspective, crypto analysts like Javon Marks have highlighted how the meme coin looks ready for a breakout. Marks predicted the meme coin could rise to as high as $0.00008.
Meanwhile, crypto analyst Pat stated that the higher time frame charts on meme coins are starting to look “bloody lovely.” He used Shiba Inu as a case study, indicating that the meme coin could rise to the $0.00004 range if it can confirm the deviation on the chart.
At the time of writing, Shiba Inu is trading at around $0.000014, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
Source: https://bitcoinist.com/shiba-inu-major-0-00004/