Shiba Inu (SHIB) has recently seen a price decline, but is expected to rebound strongly due to favorable technical signals and a recent breakout pattern. Positive signs for the Meme coin include a decrease in net exchange flows, progress in Shibarium Layer-2 solutions, and a significant increase in the burn rate.
Where is SHIB headed?
On April 12, the cryptocurrency market experienced a severe correction, with numerous digital asset prices falling to multi-week lows. For example, Shiba Inu (SHIB) plunged 6% in a week and 20% in a month.
However, many analysts believe that the negative trend will soon be followed by a significant rise. X-user Rekt Capital, which has nearly 500,000 followers, recently pointed out that the price of SHIB has reached the level of early 2022.
The trader believes that if the Meme coin breaks through the current resistance level, its value could soar by three digits. Crypto content creator Jake Gagain also took an optimistic view, claiming that Shiba Inu's "decline" was a major mistake.
X-user CRYPTO SHERIFF also expressed his opinion earlier this week, suggesting that the SHIB "breakout" has already occurred. Analysts predict that this could lead to a 350% price increase in the near future.
What factors are worth considering?
Several key factors suggest that the second-largest memecoin by market cap could see a significant price increase in the near term. One key factor is SHIB’s transaction net flow, which has been negative for the past week according to CryptoQuant. This shift from a centralized platform to a self-custodial approach is seen as a bullish signal as it reduces direct selling pressure.
Progress on the burn rate of Layer-2 scaling solutions Shibarium and Shiba Inu is also worth noting. The total number of blocks on the network recently broke the 4 million mark, and daily transaction volume has also seen a significant recovery.
Those willing to delve deeper into the matter can watch our dedicated video and learn about Shibarium’s main purpose and details:
For its part, the burn rate surged by nearly 50,000% earlier this week, resulting in millions of SHIB tokens being removed from circulation. The ultimate goal of this mechanism is to reduce the circulating supply of an asset, making it more scarce and potentially more valuable in the future.
