Just like the rest of the crypto market, the Shiba Inu price saw an uptrend at the start of the week before correcting back downward on Tuesday morning. However, this decline may point to the meme coin gearing up for another rally that could see it rise more than 400% and there are reasons why.
The Blessings Of October
One of the first reasons that suggests a massive surge this month is how the asset has performed historically in the month of October. Looking back at previous years, the Shiba Inu price had shown incredible strength in October 2021 rising over 800%, which eventually led to its all-time high.
Then in October 2022, the altcoin marked a double-digit rise even amid the start of a very bearish market. Although this was much smaller than its 2021 figures, it was significant nonetheless and registered October as a bullish month for the altcoin. Going by the average of both of these figures, analytics platform CryptoRank posits that the Shiba Inu price could rise over 400% this month if it sticks to its historical performance.
Shibarium Continues To Grow
The Shiba Inu Layer 2 blockchain, Shibarium, built atop the Ethereum network debuted in August. Following this, there have been some notable milestones for the network. One of these is the total number of transactions that have been carried out.
Data from ShibariumScan shows that the network has now crossed 3 million transactions. Additionally, wallet addresses on the network are now more than 1.25 million. The total blocks produced are also inching closer to the 1 million mark with each passing day.
These metrics point to a growing rate of adoption which could significantly impact the Shiba Inu price. This is because SHIB serves as the governance token of Shibarium and participants who want to be involved in governance will need Shiba Inu tokens to do so, increasing demand.
The Shiba Inu price has traded in a tight range between $0.0000071-$0.0000075, which suggests that the meme coin is finally finding a bottom. As a result, it could see a recovery using this point as a launch point and re-testing the resistance at $0.0000075.
If this resistance falls and bulls take control, it will be smooth sailing for Shiba Inu. Add in the recovering crypto market sentiment as shown by the Fear & Greed Index moving up into neutral. Shiba Inu will naturally follow the trajectory of Bitcoin and such a recovery would take it above $0.000008.
At the time of writing, SHIB is sitting at $0.000007279 after falling 3.33% in the last day. Its market cap of $4.2 billion makes it the 18-largest cryptocurrency in the industry.
Featured image from Siam Blockchain, chart from Tradingview.com