These Shiba Inu (SHIB) Indicators Spell Good News

TL;DR

• Several analysts view Shiba Inu as a serious contender in the crypto space, citing its expanding ecosystem and long-term potential as reasons it could perform quite well this cycle.

• Despite growing optimism, falling activity on Shibarium raises concerns about user engagement, with some experts suggesting that real utility and adoption on the network are crucial for SHIB’s sustained growth.

Is SHIB the Right Horse?

The popular X user Del Crxpto recently praised Shiba Inu (SHIB) for becoming “one of the most complex tech investments in crypto.” That said, he suggested that those who take the time to learn this “will win.” 

SHIB has indeed emerged from a meme coin into a growing ecosystem in the past few years. Some of the features include the launch of the decentralized exchange ShibaSwap, the introduction of the layer-2 scaling solution Shibarium, the development of gaming elements, and more. 

Del Crxpto is not the only one who recently spoke favorably about Shiba Inu. Earlier this month, X user Henry described the meme coin as a gem with “100x potential.” The analyst predicted a “huge pump which is going to break all the past levels ATH and will be at least 790%.”

Other bullish industry participants include SHIB KNIGHT and CW. The former observed the recent price charts of Shiba Inu and Dogecoin to opine that the “bottom is in” and “both are destined to moon.”

CW argued that SHIB is in the process of forming a bull flag pattern, envisioning a rally if the valuation breaks to the upside. “And this rise is likely to continue to the $0.000022 level where there is a selling wall,” they concluded.

What are Indicators Signaling?

Some important metrics support the bull case thesis outlined by the aforementioned analysts. Over the past week, the SHIB exchange netflows have been predominantly negative, suggesting that investors may have shifted from centralized platforms to self-custody methods. This, in turn, reduces the immediate selling pressure.

On the other hand, there are some bearish factors. For instance, Shibarium’s activity has stalled lately, with daily transactions plunging from millions throughout the past few months to roughly 141,000 on May 25 and less than 100,000 on May 26. 

This suggests a reduced network engagement and diminished interest from investors, which could possibly have a negative impact on SHIB’s valuation. 

According to some industry participants, the further advancement of Shibarium (which officially debuted in August 2023) is an essential element that could contribute to a bull run for the meme coin. One of those is the Bitcoin advocate Jeremie Davinci, who said:

“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications.

However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon.”