The post SHIB Comeback on the Way? appeared on BitcoinEthereumNews.com. Home » Crypto Bits Check out why SHIB may be gearing up for a potential resurgence. ‘; }The post SHIB Comeback on the Way? appeared on BitcoinEthereumNews.com. Home » Crypto Bits Check out why SHIB may be gearing up for a potential resurgence. ‘; }

SHIB Comeback on the Way?

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Check out why SHIB may be gearing up for a potential resurgence.

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Summarize with AI



Summarize with AI

Shiba Inu is currently a pale shadow of what it was years ago. Its price has been on a severe decline over the past several months, and the asset is no longer part of crypto’s top 30 club.

However, one important factor signals that a long-awaited rebound could be knocking on the door.

Time to Rally Again?

As of this writing, the second-largest meme coin trades at roughly $0.000007478, representing a nearly 70% collapse on a yearly scale. Its market capitalization has fallen below $4.5 billion, making SHIB the 35th-biggest cryptocurrency.

The shrinking supply of tokens stored on exchanges, though, raises the bulls’ hopes for a short-term resurgence. Data provided by CryptoQuant shows that the amount of SHIB coins on such centralized platforms has dipped to approximately 81.2 trillion on December 28, the lowest level since April 2021.

SHIB Exchange Reserve, Source: CryptoQuant

This is usually interpreted as a bullish signal because it leads to reduced immediate selling pressure. On the other hand, increasing the exchange reserves is typically seen as a pre-sale step and a precursor of a pullback.

Just a few days ago, X user Lyvo argued that SHIB has hit its “real bottom,” meaning it might be positioned for a potential rally. The analyst revealed adding exposure for the mid-term and said:

The Bears to Remain in Charge?

Numerous other factors, including the burning mechanism, suggest that SHIB’s decline may continue. Data shows that around 30.7 million tokens have been scorched over the past seven days, a 14% decrease compared to the previous week.

The program’s ultimate goal is to reduce the overall supply of SHIB coins, thus making the asset scarcer and more valuable over time. The team introduced the initiative in 2022, and since then, more than 410.7 trillion have been removed from circulation. Nonetheless, the circulating supply remains substantial at roughly 585.2 trillion tokens.

SHIB Supply, Source: shibburn.com

Shibarium’s stalled progress is another bearish element to consider. The protocol’s security was breached in mid-September, and since then, the network has not been able to reclaim its former glory. Recall that at the start of the year, it was processing millions of daily transactions, thereby advancing the entire Shiba Inu ecosystem.

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Source: https://cryptopotato.com/this-shiba-inu-metric-drops-to-a-4-year-low-shib-comeback-on-the-way/

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SHIBAINU Price(SHIB)
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