Shiba Inu (SHIB) has experienced a remarkable surge of over 43% in the last nine days. A substantial rise in on-chain activities is contributing to this bullish momentum.
SHIB hit a 10-week high of $0.000019, marking a 21% increase in the last 24 hours alone. This price increase is not just a flash in the pan but reflects broader bullish sentiments across the cryptocurrency market.
SHIB Shining Brighter Than its Peers Amid Increased On-Chain Activities
In the past week, Shiba Inu has outperformed other meme coins, standing as one of the top gainers in its category. SHIB’s 31.2% rise over the last seven days has outshone Dogwifhat, which posted a 27.4% increase.
As such, Shiba Inu’s position as the leading meme coin in performance remains unchanged. Besides the highly speculative nature of meme assets, SHIB is making the most of the combination of technical factors and market activity. Much of its recent price increase can be attributed to a surge in on-chain activities.
Data from Santiment shows that the coin’s on-chain metrics have spiked significantly over the last 9 days, aligning with the 43% rise in price gain.
😺📈 Shiba Inu has surged +43% in the past 9 days with on-chain activity notably surging compared to altcoin alternatives and other meme coins. In addition to volume, circulation, and whale transactions spiking to 10-week highs, social dominance is up as well. This indicates that… pic.twitter.com/w13pdr4r7K
— Santiment (@santimentfeed) September 26, 2024
These metrics include increases in trading volume, token circulation, and whale activities. On September 26, SHIB’s trading volume peaked at 1.19 billion tokens, marking the highest level since July.
This surge indicates liquidity and market interest in Shiba Inu, reflecting increased confidence in its short-term price movements.
Additionally, transactions involving more than $1 million worth of SHIB (whales’ movement) hit a two-month high on the same day. 27 such transactions were recorded.
Furthermore, the total amount of SHIB tokens transferred within the network has also surged. On September 26 alone, 5.7 trillion SHIB tokens were circulated, showcasing heightened network activity.
Increased circulation often correlates with rising prices, as more tokens changing hands typically indicate growing demand.
Catalysts Beyond Price: Shibarium and Burn Rates
Besides the spike in on-chain activities, other factors within the Shiba Inu ecosystem have contributed to the growing bullish sentiment.
The integration of liquid staking into the Shibarium network has been a key development. Shibarium, Shiba Inu’s layer-2 blockchain solution, has been designed to reduce transaction fees and improve scalability within the ecosystem.
The introduction of liquid staking allows users to earn rewards by staking their SHIB tokens. It adds a utility layer to the system, likely attracting more participants.
Another critical factor behind SHIB’s recent rally is the uptick in the SHIB burn rate. The Shiba Inu community has been actively burning tokens, which can contribute to long-term price growth as the available supply decreases.
According to a report, Shiba Inu’s market cap increased by $3.3 billion daily. This massive increase is a testament to retail and institutional players’ growing interest in SHIB.
Analysts Advise Caution Amid FOMO and Market Volatility
Despite the euphoria surrounding SHIB’s price increase, analysts have advised caution. Santiment’s analysis suggests that the current surge could be nearing a local top, thus, the price may face resistance soon.
The current bullish momentum may attract a wave of investors hoping to capitalize on SHIB’s rise. However, these traders could face losses if the market corrects.
Analysts suggest waiting for the price to cool down before making additional investments since short-term volatility may shake out speculative traders.
Looking to the future, Santiment’s analysis points to $0.000043 as the next significant price target for Shiba Inu. This level was last seen in February.
Moreover, if the bullish momentum continues, SHIB could also aim for the Fibonacci level at $0.000035. These technical price points suggest that there is still room for growth, but it will depend on sustained market support and continued on-chain activity.
Nevertheless, with a potential target of $0.000043, Shiba Inu remains a coin to watch closely.
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