\n\t\t\t\t\t\t\t\t\tA five-year low in SHIB’s exchange supply strengthens the bullish argument. \t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
While the second-largest meme coin has been stuck in a prolonged downtrend over the past several months, some market observers believe the price may stage an impressive comeback soon.<\/p>\n
Certain on-chain factors reinforce the bullish scenario, whereas stalled activity on Shibarium suggests the bears might not give up easily.<\/p>\n
SHIB to Skyrocket?<\/h2>\n
As of press time, the meme coin trades at around $0.000005653, representing a 52% decline on a yearly scale. Its market capitalization has fallen to roughly $3.3 billion, positioning it as the 31st-biggest cryptocurrency.<\/p>\n
According to X user JAVON MARKS, SHIB appears<\/a> to be nearing the breaking point of another Falling Wedge-like structure and may be gearing up for a substantial jump. The analyst noted that the last move out of such a formation was followed by a whopping 455% price increase, prompting the question of whether history is about to repeat itself.<\/p>\n Another market observer who recently touched upon the token is CRYPTO LEGEND. They believe<\/a> SHIB could emerge as one of the strongest performers in a future altseason, with gains potentially reaching 10x.<\/p>\n A possible hint of an upcoming rally is the persistent decrease in tokens sitting on crypto exchanges. CryptoQuant\u2019s data shows that the figure recently plunged to a five-year low of around 80.1 trillion. The trend indicates that investors have been steadily shifting from centralized platforms to self-custody, thus reducing immediate selling pressure.<\/p>\n Shiba Inu\u2019s Relative Strength Index (RSI) should also be mentioned. The technical analysis tool has tumbled to around 30 on a weekly scale, suggesting that the asset has neared oversold territory and could be due for a resurgence. Conversely, ratios above 70 are interpreted as precursors of a pullback.<\/p>\n In contrast to the optimistic forecasts, SHIB\u2019s burning mechanism and Shibarium\u2019s stagnation point to the possibility of further weakness. The burn rate is down nearly 30% on a daily scale, resulting in less than 5 million tokens (whose USD valuation is negligible) sent to a null address.<\/p>\n The program was adopted in 2022, and since then, the team and the community have scorched roughly 410.75 trillion coins, leaving approximately 585.47 trillion in circulation. Its ultimate goal is to reduce SHIB\u2019s overall supply, thereby potentially driving up prices due to scarcity (should demand remain constant or rise).<\/p>\n Shibarium\u2019s stalled progress is another bearish factor. Launched in the summer of 2023, Shiba Inu\u2019s layer-2 scaling solution was designed to boost the ecosystem by lowering fees, boosting speed, and improving scalability.<\/p>\n However, the protocol suffered<\/a> an exploit last year, which severely damaged investor confidence. Daily transactions, once in the millions, plunged to mere hundreds after the incident.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\nYou may also like:<\/h3>\n
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Further Pain for the Bulls?<\/h2>\n
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