Shiba Inu (SHIB) has recently gained a lot of attention! Big whale investors are entering the market, token burn activities are frequent, along with a 'descending wedge' signal on technical charts, which seems to indicate a bullish trend is on the way.
However, even though everyone is hyping it up, and the token circulation speed is soaring, the growth of on-chain users is still dozing off, raising some concerns about whether this upward momentum can be sustained.
COINOTAG analysis says: 'The upgrade of smart contracts and support for multiple gas tokens have reignited hope among investors. If on-chain activity and market sentiment align well, SHIB is likely to make a beautiful breakthrough!'
Shiba Inu (SHIB) has recently attracted a lot of attention from big whales!
Since the Shibarium upgrade, which supports multiple gas tokens and stronger smart contracts, the inflow of whales has surged by over 6300%! This influx of large capital is also in sync with the activity in the futures market, especially on Gate.io, where trading volume once surpassed $147 million. It seems that veteran players are full of confidence in SHIB and may be preparing for the next bull market.
Meanwhile, the burning rate of SHIB tokens has also skyrocketed—an astonishing 1.19 billion tokens were burned in the past week, up by 1499%! The 24-hour burn rate has also surged by 958%! Though there is a lot of speculation and arbitrage behind this, the consistently high token burn makes SHIB more attractive in a deflationary environment and gives long-term holders more peace of mind.
Although the price and on-chain activity of Shiba Inu (SHIB) look strong, there is one indicator that we should keep an eye on—the network value to transaction ratio, abbreviated as NVT. This value has skyrocketed to 1194, the highest point in months. Simply put, SHIB's market value is 'outpacing' the actual trading volume, suggesting it might be 'overvalued.'
Historical experience tells us that such a spike in NVT usually signals the market might be facing a correction or consolidation, almost as if it's reminding everyone: 'Don't rush too much, play steadily.'
Although SHIB whales are buying frantically and the token burn rate is soaring, there is one 'small issue'—its network growth has clearly slowed down, with only 476 new wallet addresses added recently. It's like there are fewer and fewer people at the party; although the atmosphere is still lively, there aren't many new friends.
From historical experience, the secret to sustained price increases is having more and more new users joining and wallet growth, but SHIB seems to be a bit 'cold' in this aspect right now.
This also raises concerns: if actual usage is low and participation is insufficient, once the hype cools down, SHIB's price might drop like a balloon being popped.
Technical outlook is here! SHIB is currently forming a pattern called a 'descending wedge,' which sounds like a complex math problem, but it's actually a typical bullish signal. Simply put, SHIB's price seems to be dozing off, lowering itself, but there is solid support below, ready to 'bounce' up at any moment!
If everything goes smoothly, SHIB is expected to surge to $0.00001448, which is about a 27% increase from now, feeling like a little surprise for the wallet.
However, don't forget, if you want stable growth, it relies on sustained buying pressure and good news on the blockchain. The network growth is a bit slow right now, so before investing, it's better to wait for confirmation signals, just like waiting for the red light to turn green before crossing the street—safety first!
Time to summarize! Recently, Shiba Inu (SHIB) has attracted a lot of 'big whales' to buy frantically, while the token burn rate has also skyrocketed, showing that people's bullish enthusiasm is gradually heating up, especially with that technical pattern called 'descending wedge' giving a lot of confidence.
However, don't rush to pop the champagne, the high NVT ratio and the slowing network growth remind us that there are some potential risks hidden behind SHIB, which may affect whether this upward momentum can be sustained. Therefore, novice investors should keep their eyes wide open, closely monitor on-chain dynamics and price breakout signals, and avoid blindly rushing in.
If SHIB can combine market enthusiasm with actual usage, then rising is not a dream, and the potential for increase is quite tempting. But right now, the signals are a bit complex, so it's suggested that everyone should be both hopeful and cautious, being a 'cautious optimist'!
