TL;DR
- Shiba Inu (SHIB) might not be in its best shape, but several elements suggest it could witness a renewed bull run in the near future.
- Its latest plunge coincides with the overall market decline following Donald Trump’s inauguration on January 20.
What Might Ignite a Rally?
Shiba Inu (SHIB) experienced a significant pump in mid-January, reaching a local peak of around $0.00002485 (per CoinMarketCap’s data). Since then, though, it has been on a downfall, currently trading at roughly $0.000021.
Its underperformance coincides with the broader decline of the cryptocurrency market, which occurred shortly after Donald Trump’s inauguration. While some industry participants expected him to mention the digital asset industry in his speech, the Republican did not say a single word on the topic. This might explain why numerous tokens (including SHIB) are in the red today (January 21).
Nonetheless, some essential factors signal that the popular meme coin could experience a new bull run soon. One of those is the burning mechanism, which aims to reduce SHIB’s circulating supply and potentially make it more valuable through scarcity. Over the past 24 hours, the burn rate has exploded by 500%, resulting in approximately 2.8 million tokes sent to a null address.
Next on the list is the uptrend of TREAT. The Shiba Inu-related coin, which is designed to enhance utility and engagement across the network’s projects and serve as a reward token within the ecosystem, officially saw the light of day on January 14.
While TREAT has been underperforming in the past week, its price soared by over 50% in the last 24 hours, rising to as high as $0.013. It retraced to the current $0.0082 in the following hours but remains in green territory.
Being closely connected to Shiba Inu, the potential further advancement of TREAT may positively affect the second-biggest meme coin.
Third, we will focus on SHIB’s exchange netflow, which has been negative for the past four days. This development signals a shift from centralized exchanges toward self-custody methods, which could be considered bullish since it reduces the immediate selling pressure.
Bonus: DOGE’s Influence
It is worth mentioning that SHIB’s potential short-term rally could also be propelled by Dogecoin’s price performance.
DOGE is the undisputed leader in the meme coin niche, and its rivals sometimes mimic its price swings. Most recently, its valuation briefly exploded by double digits after the Elon Musk-led Department of Government Efficiency (D.O.G.E.) featured the meme coin’s logo on its official website.
It will be interesting to see whether the asset will thrive under the new US presidency and how it will affect the rest of the memes.
