TL;DR
SHIB was predicted to witness a 180% rally supported by strong on-chain metrics and Shibarium’s growing adoption.
On the other hand, declining network growth and fewer large transactions suggest possible downward pressure.
Is SHIB Gearing up for a New Rally?
The second-largest meme coin has performed quite well in the last three months, registering a price increase of over 100%. It reached a local peak on December 7, but shortly after, it dipped substantially amid the latest market correction. In the past 24 hours, there has been a fresh resurgence, with SHIB currently trading at around $0.00002918 (per CoinGecko’s data).
SHIB Price, Source: CoinGecko
One popular analyst touching upon the asset’s recent price fluctuations is the X user JAVON MARKS. The market observer claimed that SHIB has confirmed a bullish pattern, which could be followed by “another major upside move.” JAVON MARKS reiterated their prognosis that the valuation could spike by almost 180% and reach $0.000081:
“With this target at $0.000081 continuing to be in play, we could be soon witnessing a more than 180% climb unfold in front of our eyes, and it may just already be in-effect as we speak.”
Some important on-chain metrics support the bullish forecast. An example is the SHIB exchange netflow which has been predominantly negative in the last week. This signals a potential shift from centralized platforms toward private wallets, which in turn, reduces the immediate selling pressure.
Another factor is Shibarium’s progress. The layer-2 scaling solution, whose ultimate goal is to foster the development of the Shiba Inu ecosystem, recently reached another major milestone. As CryptoPotato reported, the total number of wallet addresses surpassed two million. Prior to that, the total transactions processed on the network crossed 600 million.
Something for the Bears, too
Despite the aforementioned bullish elements, there are some metrics suggesting that SHIB’s price may head south soon. According to IntoTheBlock, Shiba Inu’s Net Network Growth (a momentum signal “that gives a pulse of the true growth of the token’s underlying network”) is down 0.76% on a daily scale, entering the bearish zone.
Large Transactions (a momentum indicator showing the number of transactions greater than $100,000) have also declined in the past 24 hours.
The “InTheMoney” metric (which measures the change in the number of SHIB investors currently sitting on paper profits) has plunged, too. Currently, around 69% of those invested in the asset are in the green, while 24% remain underwater.
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