There are several reasons that suggest Shiba Inu (SHIB) is about to 'break out'.
Firstly, the price of SHIB has more than doubled in the past three months and reached a local high on December 7, 2024. This indicates a strong recovery of SHIB after a period of decline ¹.
Secondly, the SHIB burn rate is an important metric in the Shiba Inu ecosystem. By reducing the total supply, this strategy aims to increase scarcity and maintain positive sentiment, which can affect the price of SHIB ¹.
Thirdly, the correlation between Shiba Inu and Bitcoin remains low. However, altcoins, including SHIB, often react to price fluctuations of Bitcoin, especially during bullish phases driven by institutional investment ¹.
Finally, the recovery of SHIB may also be supported by the increasing interest of institutional and individual investors in cryptocurrency. According to data from IntoTheBlock, user interaction with the SHIB network has significantly increased, with the number of active new addresses rising by 39.95% ².