Shiba Inu (SHIB) is preparing for a potential recovery after a recent price drop, fueled by increased whale activity and a spike in its burn rate. Despite the general downturn in the cryptocurrency market, which saw SHIB lose 6.5% of its value on August 27, whales have been actively accumulating the meme coin at a discount. The increased whale interest, coupled with the community’s efforts to form a decentralized autonomous organization (DAO), hint at a potential recovery.

Whale Accumulation and Price Surge

Santiment data shows a significant increase in activity by whales holding $100,000 or more worth of SHIB. This increase, the largest since July 18, suggests that whales are taking advantage of the price drop to accumulate more tokens. Additionally, IntoTheBlock data shows that large holders have been net buyers during the recent price drop, further supporting the whale accumulation theory.

Shiba Inu DAO and Community Engagement

The planned launch of the Shiba Inu DAO, announced by SHIB’s 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 could drive increased engagement and loyalty, potentially driving the price higher.

Reduce popularity and burn rate

While the recent market downturn has temporarily impacted Shiba Inu’s price, it is important to note that the coin’s popularity is declining. Social dominance has dropped to a one-year low of 0.268% and market sentiment remains largely negative. Furthermore, the burn rate, a metric that indicates community engagement and token scarcity, has also dropped significantly.

Resilience and future prospects

Despite these challenges, Shiba Inu remains a promising project with a strong community. The current price drop is largely a result of the general market trend and could recover. As the market stabilizes and whale activity continues to support the price, SHIB has the potential to increase by 35% to $0.00001740.

In conclusion, while Shiba Inu faces hurdles in terms of popularity and a declining burn rate, increased whale activity and the planned launch of a DAO provide hope for a price recovery. As the overall cryptocurrency market recovers and the community continues to support the project, SHIB could see a significant recovery in the near future.

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