Dogecoin’s biggest rival has recently followed the upward trend in the cryptocurrency market, with a notable analyst suggesting that this positive momentum could lead to further price hikes as the year draws to a close.

While the diminishing stock of SHIB tokens on exchanges has alleviated some sell pressure, various indicators imply that the cryptocurrency has yet to fully recover.

Is a New Peak Approaching?

Despite a recent 6% uptick, Shiba Inu’s price remains well below its previous record of $0.00008616 set four years ago. Nevertheless, optimism is in the air, with some experts forecasting a potential new all-time high (ATH) in the upcoming months. A user on X went by the handle YourPOP, encouraging around 250,000 followers to keep a close eye on the tweet predicting a new ATH before 2025 concludes.

On-chain metrics provide some backing for this bullish outlook. Data from CryptoQuant indicates that SHIB’s net exchange flow has mostly been negative over the last week, highlighting a trend where investors are moving their assets to self-custody options, thus lessening immediate selling pressure.

SHIB Exchange Netflow SHIB Exchange Netflow, Source: CryptoQuant

Currently, the total number of SHIB tokens on trading platforms has hit a multi-month low, recently dropping to approximately 84.3 trillion, before a slight increase to 84.5 trillion.

How Feasible is This Aspiration?

At the time of reporting, Shiba Inu is priced around $0.00001259, indicating it would require an impressive 600% increase to achieve a new ATH. Users have voiced skepticism about such a rally happening before year’s end, citing bearish indicators, including declining activity on the Shibarium network.

Previous security breaches in mid-September negatively affected the protocol’s activity, with daily transaction counts falling sharply from the millions to fewer than 5,000.

Additionally, SHIB’s Relative Strength Index (RSI) has surpassed 70, a signal that the asset may be overbought and could see a price correction soon.

SHIB RSI SHIB RSI, Source: CryptoWaves

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Tags:
Compound • Shiba Inu (SHIB)