TL;DR

Analysts predict SHIB could see significant gains if it breaks key resistance, with reduced exchange supply supporting the bullish forecasts. Shibarium’s progress could also drive the meme coins next rally.

SHIB Gearing up for Another Pump?

The cryptocurrency market experienced a substantial correction in the past few days, with leading assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and more heading south.

The meme coin sector was not spared, too, and Shiba Inu (SHIB) is among the numerous tokens plunging from their local peaks. Currently, the self-proclaimed Dogecoin killer trades at around $0.00002472 (per CoinGeckos data), which still represents a solid 46% increase on a monthly scale. 

SHIB Price, Source: CoinGecko Some analysts believe the asset has yet to jump high, assuming it exceeds some important resistance levels. One X user predicted a 50% pump if SHIB rises above $0.00002800.

The current setup suggests a bullish continuation, so traders should watch for confirmation of the breakout while placing stop-losses below the support zone to manage risk. SHIB remains a key asset to monitor for short-term growth, the analyst added.

Charting Guy also weighed in, envisioning a massive price explosion to as high as $0.00022 (an 800% rise from current levels). Are your bags packed enough for something like this, he asked. 

Other analysts outlining bullish SHIB predictions include Crypto King and Ali Martinez. The former thinks the meme coin could mimic Dogecoins (DOGE) exponential rally.

For his part, Martinez noted that almost 1.7 trillion SHIB tokens had been withdrawn from exchanges on a 24-hour scale at one point last week. The last time we saw a similar spike, Shiba Inu surged 62% in price, he added.

According to CryptoQuant, the amount of SHIB held on exchanges has declined sharply over the past few months, reaching its lowest level in three years. Shifting from centralized platforms toward self-custody methods could be viewed as a bullish sign since it reduces the immediate selling pressure.

Shibarium Might Help, too

One major factor that could contribute to a possible SHIB bull run is the further advancement of Shiba Inus layer-2 blockchain solution Shibarium.

The protocol has been making the headlines lately, blasting through numerous milestones. As CryptoPotato reported, the total transactions processed on the networks exceeded 500 million, while total blocks crossed 8 million. 

Shibarium aims to boost the Shiba Inu ecosystem by lowering fees, increasing speed, and improving scalability. Key updates in the last several months include adopting a burn mechanism to reduce SHIBs supply and potentially increase its value.

For more updates on the ecosystem, make sure to check out our Shibarium news.