Shiba Inu (SHIB) appears poised for a remarkable upward surge, as investors have recently amassed a substantial amount of Shiba Inu tokens. Despite this promising accumulation, the fundamental aspects of the meme coin continue to raise concerns, casting a bearish outlook for SHIB.
Shiba Inu is set for a possible parabolic rally in October, based on historical trends. Data from CryptoRank indicates that the meme coin has consistently seen positive returns in October. During the 2021 bull run, SHIB’s price soared by an astonishing 833%, while it achieved modest gains of 10% and 6% in October 2022 and 2023, respectively. Considering these patterns, Shiba Inu could record significant gains this October. Furthermore, the broader crypto market also projects a bullish outlook for October. Notably, Bitcoin, the flagship cryptocurrency, has historically seen its highest returns between October and December, and is once again expected to rally beginning in October.
The upward trajectory of Bitcoin is anticipated to influence Shiba Inu’s price positively. Data from the market intelligence platform IntoTheBlock reveals that SHIB’s price correlation with Bitcoin is currently at 0.89, suggesting a strong positive relationship between the two assets. This correlation implies that SHIB is likely to rally as Bitcoin trends upward.
Investors are already bracing for this anticipated surge. Data from the on-chain analytics platform Cryptoquant shows that investors accumulated 770 billion SHIB between September 23 and 24, representing significant outflows from exchanges over these two days. Typically, moving tokens off exchanges indicates a long-term holding strategy, further supporting the potential for a price increase in October.
Despite the optimistic forecasts, Shiba Inu’s fundamentals cast a shadow. The Shiba Inu burn tracker, Shibburn, reports a dramatic drop of over 90% in the coin’s burn rate within the last 24 hours, with a 61% decline in tokens burnt over the past week. This decreased burn rate highlights a troubling reduction in network activity on Shibarium. Data from the Shibarium explorer indicates that daily transactions on the layer-2 network remain stagnant and below 10,000. Although a recent high of 11,360 transactions occurred on September 19, the volume fell to 8,000 the following day.
The low activity on Shibarium affects Shiba Inu’s burn rate significantly. Base transaction fees on Shibarium are converted to SHIB and then burnt, so decreased engagement on the layer-2 network limits the number of SHIB tokens that can be burnt.
Currently, Shiba Inu is trading at approximately $0.000014, reflecting a 3% increase in the last 24 hours, according to CoinMarketCap data. Despite the bullish sentiment and historical data supporting a potential rally in October, the meme coin’s fundamentals present a narrative of caution.
 might experience a significant rally this October, supported by historical trends and Bitcoin’s bullish outlook.){kind=link}