TL;DR

Despite a recent 20% weekly decline, analysts forecast a significant rally for Shiba Inu, driven by positive technical indicators. A sharp increase in SHIBs burn rate, enhancements to its Shibarium layer-2 platform, and other elements are seen as bullish signals for its future price.

Where is SHIB Headed?

The popular meme coin  Shiba Inu (SHIB)  has underperformed lately, with its price plunging by 20% on a monthly scale. For its part, the market capitalization has retraced below $13.5 billion.

However, the negative trends dont seem a big concern for many analysts who believe SHIB is poised for a bull run. 

One example is the X user with almost 100,000 followers – Del Crxpto. He claimed to know whats coming in the future and as such, jumping on the SHIB bandwagon as an investor:

I know the future, I know whats coming for SHIB. I will not share this information, as I do not want to tarnish my SHIB relationships. However, I will tell you this: I am accumulating $SHIB.

Another popular analyst who entered Shiba Inus ecosystem is Ali Martinez. He argued that the assets price trajectory has been forming a bull flag on a daily chart, raising hopes for a 300% rally.

Rekt Capital and CRYPTO SHERIFF chipped in, too. The former noted that SHIBs value has reached the same level as the one from early 2022. The trader assumed that the price might skyrocket by triple digits should it cross the critical resistance level of $0.00002741.

CRYPTO SHERIFF suggested that a breakout has already happened, forecasting a 350% rally in the near future.

Observing These Important Factors

Several elements hint that a SHIB price explosion might indeed be on the horizon. The burn rate, which skyrocketed by over 4,000% a few days ago, is among those. The programs ultimate goal is to reduce the multi-trillion supply of Shiba Inu, making it scarcer and potentially more valuable in time.

The further development of Shibarium should also be mentioned. The meme coins layer-2 scaling solution recently underwent two major upgrades, aiming to improve user experience and enhance compatibility with popular wallets, including MetaMask, Coinbase Wallet, and Trust Wallet. 

Meanwhile, SHIB exchange netflow has been predominantly negative in the past seven days, signaling a shift from centralized platforms to self-custody wallets. Such a move is considered bullish since it reduces the immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant