The year 2023 has had a positive impact on the entire crypto market especially Bitcoin which saw a jump of 40% in just one month. As the flagship currency began its recovery rally, so did the other altcoins, including the meme currency, Shiba Inu. The Dogecoin killer managed to gain more than 45% in January alone.
Currently, Shiba Inu is trading at $0.0000138 with a surge of 11.78% over the last 24hrs and 15.72% in the span of seven days. If SHIB continues the bull run, the currency shall pass its immediate resistance at $0.0000145 and if it fails, it could fall below its support of $0.0000130.
Meanwhile, when looking at the reason for Shiba Inu’s massive spike there could be two factors. The first is the token burn and next is whale movements which has increased interest among the community members.
Two Reasons For Shiba Inu’s Bull Run
As per the data, the rate at which Shiba Inu’s SHIB is burnt has surged nearly 502%. Here burning refers to moving tokens to dead wallets which reduces the circulating supply. On the other hand, Whale Alert, a crypto transaction tracker claims that there was a huge amount of Shiba Inu transactions on the Ethereum blockchain in the last 24hrs. Overall, the data states that there were 10 different transactions which were worth between $5.7 million to $6.4 million.
Whenever such huge transactions happen, it suggests that these movements are from whales. The report further indicates that one of the Shiba Inu whales have transferred 499,999,668,400 SHIB from an address that is in connection with Binance to an unknown wallet.
However, the reason for such a huge transaction still remains unknown, but if the transfer was to accumulate these coins, Shiba Inu will have a bullish moment ahead. On the contrary, if investors are planning to sell through over-the-counter (OTC) deals, Shiba Inu price will see a downfall soon.
Source: https://coinpedia.org/altcoin/shiba-inu-price-soars-more-than-45-here-is-why/