Shiba Inu (SHIB) Surges Over 100% in 2024, Poised for Historic October Run

Shiba Inu (SHIB), the popular meme cryptocurrency, has been making waves in the crypto market with an impressive performance in 2024. The digital asset has seen gains exceeding 100% this year, primarily driven by strategic token burns and strong community support.

Token Burns Fuel Price Surge

Since its inception, a staggering 41% of the original 999 billion SHIB tokens have been removed from circulation through burns. This deflationary mechanism has been a key factor in boosting the token’s value. In a recent move, 280 million tokens were burned just before September, possibly in anticipation of market fluctuations.

SHIB/USD Technical Analysis Suggests Bullish Trend

After a prolonged period of consolidation and decline, SHIB has shown signs of a potential bullish trend. The token recently broke through its 50-day Exponential Moving Average (EMA), a significant technical indicator. Currently trading at approximately $0.00001489, SHIB’s next target is the 100-day EMA at $0.00001700.

However, analysts caution that trading volume remains relatively low, which could impact the sustainability of the current upward momentum.

Historic October Performance

Historically, October has been a strong month for SHIB. Data from CryptoRank reveals that SHIB has consistently delivered positive returns in October, with a staggering 833% increase during the 2021 bull run. This pattern has raised expectations for another significant rally in October 2024.

Investor Accumulation and Market Correlation

On-chain data from CryptoQuant shows substantial investor accumulation, with 770 billion SHIB moved off exchanges between September 23 and 24, indicating a long-term holding strategy. Additionally, SHIB’s price correlation with Bitcoin stands at 0.89, suggesting that it could benefit from Bitcoin’s traditionally strong performance in the fourth quarter.

Concerns and Challenges

Despite the positive price action, some concerns persist:

1. The burn rate has dropped by over 90% in the last 24 hours, with a 61% decrease in tokens burned over the past week.
2. Shibarium, SHIB’s layer-2 network, is experiencing low activity, with daily transactions stagnating below 10,000.
3. The lack of network activity on Shibarium is impacting the burn rate, as base transaction fees are typically converted to SHIB and burned.

Looking Ahead

While technical indicators and historical patterns suggest a potentially strong performance for SHIB in the coming months, investors should remain cautious. The token’s long-term success will depend on maintaining crucial support levels, addressing the current low network activity, and sustaining the momentum of its burn mechanism.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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