Where is SHIB Headed in 2024?

TL;DR

Shiba Inu (SHIB) has recently dropped in value but is predicted to rebound strongly due to favorable technical signals and recent breakout patterns.
Positive signs for the meme coin include a decrease in exchange netflows, advances in its Shibarium layer-2 solution, and a significant increase in its burn rate.

Where is SHIB Headed?

The cryptocurrency market experienced a severe correction on April 12, with the prices of numerous digital assets dropping to multi-week lows. Shiba Inu (SHIB), for one, has nosedived by 6% on a weekly scale and 20% in a month.

However, there are plenty of analysts who believe the negative trend will soon be followed by a substantial upswing. 

The X user with almost half a million followers – Rekt Capital – recently noted that SHIB’s price has reached the same level as the one from early 2022. The trader assumed that the meme coin’s value could skyrocket by triple digits should it cross the ongoing resistance level. The crypto content creator Jake Gagain was bullish, too, claiming that “fading” Shiba Inu “is a major mistake.” 

The X user CRYPTO SHERIFF also chipped in earlier this week, suggesting that a SHIB “breakout” has happened. The analyst predicted this could lead to a 350% price rally in the near future.

Which Factors are Worth Considering?

Several key factors indicate that the second-largest meme coin by market capitalization could experience a significant price surge in the short term. One crucial factor is SHIB’s exchange netflow, which has been negative in the past week according to CryptoQuant’s data. This shift from centralized platforms to self-custody methods is seen as a bullish sign, as it reduces immediate selling pressure.

The progress of the layer-2 scaling solution Shibarium and Shiba Inu’s burn rate are also worth noting. The number of total blocks on the network recently exceeded the 4 million mark, and there has also been a significant resurgence in terms of daily transactions. 

Those willing to dive deeper into the matter can take a look at our dedicated video and understand Shibarium’s main purposes and specifics:

For its part, the burn rate exploded by almost 50,000% earlier this week, resulting in millions of SHIB tokens being removed from circulation. The mechanism’s ultimate goal is to reduce the circulating supply of the asset, making it scarcer and potentially more valuable in the future.