Social media buzz and withdrawals of SHIB from exchanges indicate elevated investor interest and potentially less selling, which might stimulate the price hikes. In addition, Shiba Inu’s continuous token burning and construction of the Shibarium blockchain may increase SHIB’s value by limiting supply and developing a new platform for the coin.
What Triggers a Shiba Inu Price Rally?
Despite the recent market drop, Shiba Inu (SHIB), the popular dog-themed cryptocurrency, could be poised for another huge price explosion. Several significant factors indicate a possible replication of SHIB’s early March rally, which was fuelled by strong community engagement and mindful hodling behavior.
LunarCrush, a social media intelligence service, has identified a critical factor: growing social engagement. SHIB consistently ranks among the top trending cryptocurrencies on X, owing to its large and enthusiastic investor community. This robust community engagement, which exceeds that of competitors such as Dogecoin (DOGE) and Pepe Coin (PEPE), could lead to additional buying pressure.
Furthermore, LunarCrush emphasizes the beneficial effects of growing price action and increased market volume. These elements usually indicate increased investor interest and potentially higher prices. Additionally, SHIB has a strong “LunarCrush AltRank,” a composite statistic that takes into account market and social volume rankings, value movements compared to Bitcoin, and social score rankings. A high AltRank indicates a positive general attitude about SHIB.
Going beyond social media trends, CryptoQuant data shows a substantial surge in SHIB exchange activity. Over the past seven days, there has been a large outflow of SHIB, signaling a trend towards self-custody. This move away from exchanges, which is frequently regarded as a bullish indication, may alleviate the immediate selling pressure on SHIB, perhaps leading to price rise.
While the recent market downturn has pushed SHIB lower, it’s important to highlight its impressive year-to-date performance. SHIB remains 137% higher than it was in April 2023. Despite some consolidation in the $0.00003 – $0.000026 range, this consolidation phase may be a precursor to continued upward momentum. Bulls are aiming to sustain the stunning 320% gains made in the last month.
Despite facing a short-term setback, SHIB presents a convincing case for future growth. Strong community participation, increased social media activity, and an overall decrease in exchange holdings are all contributing to a potential bull run for the popular dog-themed cryptocurrency during the forecast period.
