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Shiba Inu (SHIB) is capturing the attention of investors as it gears up for a potential historic run. Over recent days, a significant volume of Shiba Inu tokens has been accumulated by investors, suggesting a bullish outlook. However, the fundamentals of this meme coin continue to raise concerns, painting a bearish picture for SHIB.
Shiba Inu Set For A Historic Run In October
October could prove to be a monumental month for Shiba Inu, should historical trends repeat. Data from CryptoRank highlights that SHIB has consistently seen positive monthly returns in October. During the 2021 bull run, SHIB’s price skyrocketed by an impressive 833%. The meme coin also saw modest gains of 10% and 6% in October 2022 and 2023, respectively.
Broader Crypto Market Outlook
The broader crypto market is also showing a bullish outlook for October. Historically, Bitcoin has experienced its highest returns between October and December. This trend is expected to continue, potentially igniting a price rally for Bitcoin starting in October. Given the strong positive price correlation between SHIB and Bitcoin, Shiba Inu’s price is likely to rise alongside Bitcoin. According to data from IntoTheBlock, SHIB’s price correlation with Bitcoin stands at 0.89, indicating a significant positive correlation.
Investor Accumulation
Data from Cryptoquant reveals that investors are already positioning themselves for this anticipated run. Between September 23 and 24, a massive 770 billion SHIB tokens were moved off exchanges, signifying long-term holding intentions. This accumulation trend could further contribute to Shiba Inu’s potential price surge in October.
Fundamentals Remain A Concern
Despite the optimistic outlook, Shiba Inu’s fundamentals present some concerns. Data from the Shiba Inu burn tracker, Shibburn, indicates a significant drop in the coin’s burn rate, plummeting over 90% in the last 24 hours. Additionally, there has been a 61% decline in the number of tokens burnt over the past week.
Shibarium Network Activity
Another bearish fundamental is the stagnant activity on Shibarium, Shiba Inu’s layer-2 network. According to the Shibarium explorer, daily transactions remain below 10,000, with a recent high of 11,360 transactions on September 19. However, daily transactions fell to 8,000 the following day. This low activity has directly impacted Shiba Inu’s burn rate, as base transaction fees on Shibarium are converted to SHIB and burnt. The limited interest in the layer-2 network restricts the number of SHIB tokens that can be burnt.
Current Trading Status
At the time of writing, Shiba Inu is trading around $0.000014, marking a rise of over 3% in the last 24 hours, according to data from CoinMarketCap.
While the potential for a significant price rally in October is high, the underlying fundamentals and network activity pose challenges that could impact Shiba Inu’s long-term growth.
