cryptoglobe.com
Popular meme-inspired cryptocurrency Shiba Inu ($SHIB) has seen its value surge over 15% over the past week while the cryptocurrency market recovers, at a time in which analysts are becoming more optimistic about the cryptocurrency’s future.
Data from leading blockchain analytics firm CryptoQuant reveals that SHIB reserves on centralized cryptocurrency exchanges have dropped to their lowest level since February 2022, and are currently at around 150 trillion tokens, as CryptoPotato first reported.
This decline indicates a decrease in the number of SHIB available for trading, potentially leading to scarcity and future price increases, assuming demand remains steady or rises.
CryptoQuant’s data also shows a predominantly negative SHIB exchange netflow over the past week, showing a large movement of tokens from centralized exchanges to self-custody wallets that suggests a decrease in immediate selling pressure, which is generally considered a bullish signal.
Beyond these exchange-related metrics, other developments within the Shiba Inu ecosystem also hint at a potential price rise, with a growing SHIB burning rate helping remove tokens from circulation and reduce circulating supply.
SHIB’s cryptocurrency community has helped it maintain a strong social activity, with social intelligence firm Lunar Crush noting earlier this month SHIB is “signaling bullish” as it has been seeing increasing social activity paired with accelerating market volume and rising price action.
As CryptoGlobe reported, the meme-inspired cryptocurrency could, according to an analyst, surge in the near future based on technical analysis, as the analyst suggested its chart shows a symmetrical triangle pattern, often interpreted by traders as a bullish signal.
A symmetrical triangle pattern is formed by drawing trendlines, one falling and another one rising, along a converging price range. To confirm a valid break and not a false one, traders should look for a surge in volume and at least two consecutive closes beyond the trendline, according to Investopedia.
Symmetrical triangles usually indicate that the price will continue in the same direction as before the triangle formed. Therefore, traders would expect the price to break upward if a symmetrical triangle follows an uptrend.
Notably, last month, Shiba Inu’s layer-2 scaling solution, Shibarium, started hitting new milestones. The network topped the 400 million transaction mark earlier this week as SHIB’s adoption grows. Shibarium hit the 300 million transaction mark back in January of this year.
Featured image via Unsplash.