Major Gains for Shiba Inu (SHIB) Price Soon? Analyst Chips In

TL;DR

  • Shiba Inu (SHIB) experienced a recent price drop, but analysts predict a potential bullish trend due to critical resistance levels being tested.
  • Optimism for a rally is supported by significant outflows from exchanges and advancements in its L2 scaling solution.

Despite the brief resurgence at the start of the ongoing week, the price of Shiba Inu (SHIB) returned to red territory. As of the moment of writing these lines, it trades at around $0.00002734, a 3% decline on a daily scale and a 20% drop on a monthly basis.

SHIB Price
SHIB Price, Source: CoinGecko

However, numerous analysts believe a bull run will soon replace the negative trend. One example is the popular X user Rekt Capital, who noted that SHIB’s current price has reached the same level as the one from early 2022. 

Back then, the asset was rejected for further gains, but the scenario might be different this time. Rekt Capital predicted a triple-digit price increase should the token overcome the important resistance zone.

The crypto content creator and investor – Jake Gagain – was bullish on SHIB, too. He thinks “fading” the second-largest meme coin by market capitalization “is a major mistake.”

One essential factor signaling that the valuation might be on the verge of a rally is SHIB’s exchange netflow. As revealed by CryptoQuant, there has been a massive Shiba Inu outflow from exchanges in the past week. Shifting from centralized entities to self-custody methods could be considered bullish since it reduces the immediate selling pressure.

SHIB Exchange Netflow
SHIB Exchange Netflow, Source: CryptoQuant

Additional elements that could positively impact SHIB’s price include its burning rate and the development of the layer-2 scaling solution Shibarium.

See also  Color Protocol launches ERC-404 conversion platform for Memecoin

As CryptoPotato reported, the network experienced a significant revival in terms of daily transactions, while the number of total blocks crossed the 4 million mark.

Those curious to learn more about Shibarium’s purposes and specifics, feel free to check our dedicated video below:

The post Major Gains for Shiba Inu (SHIB) Price Soon? Analyst Chips In appeared first on CryptoPotato.

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