Popular crypto analyst Ali Martinez recently shared a post about Shiba Inu. Despite relatively calm reactions to the altcoin increases seen in different altcoins in the last 2 weeks due to the rise in Bitcoin, he emphasized that Shiba Inu (SHIB) has achieved significant growth in recent months. Martinez pointed out that the value of SHIB has increased by 55% in the last three months, indicating a solid price movement.
Current State of Shiba Inu
The increase in SHIB’s value can be associated with the general situation of the broader crypto market, where a significant rally began with Bitcoin exceeding the $40,000 level for the first time in a year at the end of October and the beginning of November 2023. This rise in sentiment was reflected in SHIB and other altcoins in the crypto market.
With the increase in Bitcoin’s price, there was also a significant increase in Shiba Inu’s burning rate. The burning processes in the tokens permanently remove them from circulation and potentially reduce the supply, which increases the demand for the token.
The burning process specific to SHIB became even more important with the recent burning of more than 8.2 billion SHIBs. What made this situation significant was the burns made through Shibarium. This was carried out by being directed to initiatives such as ShibBurn from Shibarium. All these developments created great support in the recent increases in the SHIB price.
Future of Shiba Inu (SHIB) Coin
While Martinez believes more growth is possible for SHIB, he drew attention to a significant resistance area that the memecoin might potentially impede its upward movement.
The analyst also noted that about 90,000 SHIB addresses currently own more than 422 trillion SHIBs with purchases of $0.000016 and above, and that this could cause a concentration in the memecoin.
These SHIB whales may be pressured to sell their coins despite holding them at a loss, and if they make a sale, the buying points in the market will drop. This situation can lead to new investors lowering the price with the reduced cost of purchase.
In the last few months, a large number of whales have been formed within the Shiba Inu community as more than 4 trillion SHIBs have been traded multiple times. Some of these whales may be looking for opportunities to sell the coins they hold, and this situation can be turned into a perfect opportunity in terms of the current increase of SHIB.
There was an impressive 18% increase in the SHIB price over the last seven days. However, after this increase, the rise in momentum in the altcoin was lost, and as of writing time, it fell below $0.00001 again.
