SHIB bulls may be in for some good news—let's see what is brewing.
From a weekly perspective, SHIB is in the deep red zone, but certain factors suggest that not everything is bleak.
Earlier this week, this meme coin entered the top ten cryptocurrencies and sparked the strongest bullish sentiment. However, retail enthusiasm does not necessarily guarantee a price increase.
Is it time to pump again?
Shiba Inu (SHIB) follows the overall pullback in the cryptocurrency space, with its price dropping 9% over the past week. Its market cap currently hovers around $7.3 billion, far below the peak of nearly $20 billion in December.
Despite the poor performance, some key factors suggest a rebound may be imminent. The net inflow of SHIB on exchanges is one example, primarily negative over the past week. This indicates that investors are shifting from centralized platforms to self-custody methods, alleviating the current selling pressure.
Currently, the amount of tokens stored on exchanges is approximately 852 trillion, a significant decrease from 1,407 trillion at the beginning of the year.
Next is the recovery of Shibarium. The daily trading volume of Shiba Inu's Layer-2 scaling solution fell below 4 million on August 18 and 19 but soared to 4.8 million on August 20, setting a record high since early February 2025.
Every transaction on Shibarium involves the burning of SHIB tokens, and if demand does not drop, this will be favorable for the price. Additionally, an increase in trading activity may indicate that the Shiba Inu ecosystem is gaining more applications.
Some analysts and notable figures in the cryptocurrency space believe that the development of Shibarium is crucial for a potential SHIB bull market. Not long ago, Bitcoin advocate Jeremie Davinci stated:
You know, I like Shiba Inu, and I think it will perform relatively well in this cycle, but the gains may not be as high as you expect. I feel that with Shibarium now, Shiba Inu is more practical; basically, it is a chain that can run various applications.
However, no one is using it at the moment, and there are currently no applications using your tokens on Shibarium. If they solve this issue, Shiba Inu could reach the moon.
Market sentiment is optimistic, but there are issues.
According to data from CoinMarketCap, Shiba Inu was among the top ten cryptocurrencies with the most bullish sentiment on August 20.
While this may be encouraging for SHIB enthusiasts, the performance of the cryptocurrency market is often unexpected. Historical experience shows that price movements can be counter to public sentiment, meaning that retail optimism may actually signal potential trouble for SHIB in the future.
