Is SHIB Price About to Climb? 3 Reasons Behind Shiba Inu’s Bullish Outlook

TL;DR

• Shiba Inu (SHIB) may not be in its best shape, but several elements suggest that it could see another bull run in the near future.
• Its latest fall coincides with the overall market decline following Donald Trump’s inauguration on January 20.

What could spark a rally?

Shiba Inu (SHIB) saw a strong rally in mid-January, reaching a local peak of around $0.00002485 (according to CoinMarketCap data). Since then, however, it has been falling, currently trading at around $0.000021.

Its underperformance coincides with the broader decline of the cryptocurrency market.which occurred shortly after the inauguration of Donald Trump. While some in the industry expected him to mention the digital assets industry in his speech, the Republican didn’t say a single word. on the subject. This could explain why many tokens (including SHIB) are in the red today (January 21).

Neverthelesssome key factors indicate that the popular coin may soon experience another bull run. One of them is the combustion mechanism, which aims to reduce the circulating supply of SHIB and potentially making it more valuable through scarcity. Over the past 24 hours, the burn rate has exploded by 500%, resulting in approximately 2.8 million tokens being sent to a null address.

Next on the list is TREAT’s uptrend. The Shiba Inu-related coin, designed to improve utility and engagement in network projects and serve as a reward token within the ecosystem, has officially launched. saw the light of day on January 14.

Although TREAT underperformed last week, its price flew away by more than 50% in the last 24 hours, reaching $0.013. It returned to the current level of $0.0082 in the following hours but remains in green territory.

Being closely related to Shiba Inu, TREAT’s potential progress could have a positive impact on the second largest coin.

Third, we will focus on SHIB exchange net flowwhich was negative for the last four days. This development signals a shift from centralized trading to self-custody methods, which could be seen as bullish because they reduce immediate selling pressure.

Bonus: the influence of DOGE

It is worth mentioning that SHIB’s potential near-term rally could also be propelled by Dogecoin’s price performance.

DOGE is the undisputed leader in the meme coin niche, and rivals sometimes imitate its price fluctuations. More recently, his assessment briefly exploded two digits after the Elon Musk-led Department of Government Effectiveness (DOGE) featured the meme coin logo on its official website.

It will be interesting to see if the asset will thrive under the new US presidency and how it will affect the rest of the memes.