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Shiba Inu (SHIB) is on the verge of a historic run, as investors have accumulated a significant amount of Shiba Inu tokens in recent days. However, the meme coin’s fundamentals remain concerning as they paint a bearish picture for SHIB.
Shiba Inu Set For A Historic Run In October
Shiba Inu is set to enjoy a parabolic rally in October if history were to repeat itself. Data from CryptoRank shows that the meme coin has always enjoyed monthly positive returns in October. During the 2021 bull run, SHIB’s price skyrocketed by 833% in October of that year, while it enjoyed modest gains of 10% and 6% in October 2022 and 2023, respectively.
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Therefore, Shiba Inu could record significant gains this October. Moreover, the outlook for the broader crypto market in October is also bullish. For instance, Bitcoin has historically enjoyed its highest returns between October and December. The flagship crypto is again expected to enjoy a price rally starting in October.
As such, Shiba Inu’s price will also rally as Bitcoin enjoys an upward trend. Data from the market intelligence platform IntoTheBlock shows that SHIB’s price correlation with BTC is currently at 0.89, which indicates a strong positive price correlation between both assets. This proves that the meme coin will rally as Bitcoin moves to the upside.
Shiba Inu investors are already preparing for the historic run as data from the on-chain analytics platform Cryptoquant shows that they have accumulated 770 billion SHIB between September 23 and 24. This figure represents the outflows that left exchanges in these two days. Moving coins off exchanges indicates that these investors intend to hold for the long term.
This accumulation trend among these investors could also contribute to the price surge that Shiba Inu could enjoy in October.
Fundamentals Remain A Concern
Shiba Inu’s fundamentals are a concern, as they paint a bearish picture for the meme coin. Data from the Shiba Inu burn tracker Shibburn shows that the coin’s burn rate has dropped over 90% in the last 24 hours. Meanwhile, there has also been a 61% drop in the number of tokens burnt in the last seven days.
The lack of network activity on Shibarium is another bearish fundamental. Data from the Shibarium explorer shows that daily transactions on the layer-2 network remain stagnant and below 10,000. A recent high was the 11,360 transactions witnessed on September 19. However, the following day, daily transactions dropped to 8,000.
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The low activity on Shibarium has also contributed to the drop in Shiba Inu’s burn rate. Base transaction fees on Shibarium are usually converted to SHIB and burnt. However, with such low interest in the layer-2 network, there is a limit to how many SHIB tokens can be burnt.
At the time of writing, Shiba Inu is trading at around $0.000014, up over 3% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com