Shiba Inu (SHIB) is poised for a potential rebound following a recent price dip, fueled by a surge in whale activity and a spike in the burn rate. Despite the broader crypto market downturn, which saw SHIB lose 6.5% of its value on August 27, whales have been actively accumulating the meme coin at a discount. This increased whale interest, coupled with the community’s efforts to establish a decentralized autonomous organization (DAO), hints at a potential recovery rally.
Whale Accumulation and Price Surge
Santiment data reveals a significant spike in the activity of whales holding SHIB worth $100,000 or more. This surge, the largest since July 18, suggests that whales are capitalizing on the price decline to accumulate more tokens. Additionally, IntoTheBlock data indicates that large holders have been net buyers during the recent price drop, further supporting the theory of whale accumulation.
Shiba Inu DAO and Community Engagement
The planned launch of a Shiba Inu DAO, announced by SHIB Head of Marketing “Lucie,” is another positive factor influencing the coin’s outlook. The DAO will empower SHIB holders to vote on future initiatives and have a say in the project’s development. This community-driven approach can foster increased engagement and loyalty, potentially driving price appreciation.
Dropping Popularity and Burn Rate
While the recent market downturn has temporarily impacted Shiba Inu’s price, it’s important to note that the coin’s popularity has been declining. Social dominance has dropped to a one-year low of 0.268%, and market sentiment remains predominantly negative. Furthermore, the burn rate, a metric indicating community engagement and token scarcity, has also experienced a significant decline.
Potential Recovery and Future Outlook
Despite these challenges, Shiba Inu remains a promising project with a strong community. The current price downturn is largely a result of the broader market trend, and a recovery is possible. As the market stabilizes and whale activity continues to support the price, SHIB could potentially experience a 35% surge to $0.00001740.
In conclusion, while Shiba Inu faces headwinds in terms of declining popularity and burn rate, the increased whale activity and the planned launch of a DAO offer hope for a potential price recovery. As the broader crypto market recovers and the community continues to support the project, SHIB could see a significant rebound in the near future.
