Shiba Inu (SHIB) has seen a recent decline in price, with its market capitalization dropping below $15 billion. Despite this, there are factors indicating that SHIB may be on the verge of a rebound. One key factor is the token burn rate, which has increased significantly, leading to the destruction of over 51.7 million tokens in just 24 hours. Although this may seem insignificant in terms of USD value, continuous token burns are reducing the circulating supply of SHIB, potentially increasing its value in the long run. Since the initiation of the program, over 410.7 trillion tokens have been burned, leaving around 589.3 trillion in circulation.
Additionally, Shiba Inu’s Relative Strength Index (RSI) has recently dropped below 30, indicating that the asset may be underbought and therefore more likely to see a rebound in price. On the technical front, this suggests a potential recovery for SHIB. Furthermore, the cryptocurrency’s exchange netflow has been negative over the past three days, suggesting a shift from centralized platforms to self-custody methods, which could reduce selling pressure and support a price increase.
In addition to these factors, Shiba Inu’s layer-2 scaling solution, Shibarium, has seen significant advancements, with the total number of wallet addresses surpassing two million. The network has been processing millions of daily transactions, totaling over 630 million. This increased activity on Shibarium may attract new developers and users, boosting visibility and adoption of SHIB in the long run. Overall, these developments indicate that SHIB may be poised for a recovery despite recent market declines.
In conclusion, Shiba Inu’s continuous token burns, low RSI, and negative exchange netflow suggest that the cryptocurrency may be on the verge of a rebound. Additionally, the progress of Shibarium and the increasing number of wallet addresses and daily transactions indicate growing interest and adoption of SHIB. As the cryptocurrency market continues to evolve, these factors may contribute to SHIB’s long-term value growth and potential for a sustained recovery in price. Investors and enthusiasts of Shiba Inu should stay informed about these developments and monitor the market for potential opportunities.
