Three Reasons Why Shiba Inu (SHIB) Price May Rise Soon Despite Recent Crashes
TL;DR
- The price of the shiba inu has fallen 25% in the past week, but important factors indicate that a new rise may be just around the corner.
- One of these elements is the Bitcoin halving, which is expected to occur later this week.
Shiba Inu is among the cryptocurrencies worst affected by the ongoing market decline, with SHIB price falling by 25% weekly. However, some optimistic indicators indicate that the valuation may move north in the short term.
One of these factors is increased whale activity, with many large investors purchasing significant amounts of tokens.
A whale as observed on Etherscan accumulated More than 107 billion assets from Coinbase on April 14, when SHIB fell to a six-week low. Other major investors also joined this caravan. buying Billions of tokens in the coming days.
Such movements of whales can positively affect the value of SHIB because purchasing a significant amount of assets reduces the available supply in the market, making it more scarce. Large transactions from such investors can also influence positive market sentiment and potentially trigger excitement among industry participants.
Waiving Trades
Another element worth observing is the Shiba Inu stock market net flow. mapped Huge red candles have been seen in the last few days (according to data from CryptQuant).
SHIB Exchange Netflow, Source: CryptoQuant
The transition from centralized exchanges to self-custody methods is considered to be bullish in terms of the price of the asset, as it reduces the immediate selling pressure.
BTC Halving
Last but not least, we will touch on the upcoming Bitcoin halving (scheduled for the end of this week). The groundbreaking event, which occurs approximately every four years, reduces by half the rewards distributed to miners for validating blocks on the blockchain.
This leads to a decrease in the rate at which new BTC is created and enters circulation. For its part, subsequent scarcity can push up the price of the asset (assuming demand increases or remains the same).
Historically, the halving has been followed by a massive resurgence in the primary cryptocurrency and the entire digital asset market, which means the Shiba Inu could benefit as well.
For those who want to learn more about the event and prepare, feel free to watch our special video below:
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