3 Factors Driving the Bullish Move

TL;DR

• A broader crypto rebound has pushed BTC, ETH, and major altcoins higher, with SHIB following the trend, gaining 5% in 24 hours.

• Upcoming US CPI data and potential Ukraine peace talks may influence market sentiment in the short term, determining whether SHIB’s bullish momentum continues or reverses.

The Potential Catalysts

After underperforming over the past few weeks, Shiba Inu (SHIB) has finally charted a solid price rally in the last 24 hours. It currently trades at around $0.00001232 (per CoinGecko’s data), representing a 5% increase for the timeframe.

An important element that may have positively impacted the valuation is Shibarium’s resurgence. Shiba Inu’s layer-2 blockchain solution has processed almost 250,000 transactions in the past 24 hours, which is a substantial rise compared to the number of daily transactions witnessed earlier this month.

Shibarium is specifically designed to foster the development of the meme coin’s ecosystem. Earlier this month, the popular analyst Davinci Jeremie suggested that SHIB could go “to the moon,” but this would depend on the protocol’s progress.

“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications.

However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon,” Davinci stated.

Another factor that should be mentioned is SHIB’s exchange netflow. According to CryptoQuant, the figure has been on a downtrend in the past week, signaling a possible shift from centralized platforms toward self-custody methods. This development reduces the immediate selling pressure.

CryptoQuant’s data also shows that SHIB’s reserves stored at exchanges have dropped to an almost four-year low of approximately 94.2 trillion tokens. 

The Market’s Rebound

Lastly, Shiba Inu’s revival could be attributed to the recovery of the cryptocurrency sector. Bitcoin (BTC), Ethereum (ETH), and most leading digital assets have charted solid gains in the past 24 hours, erasing some of the losses incurred in the last few weeks.

Meme coins, including SHIB, often follow the overall trend. It is worth mentioning that the next few days may offer additional volatility due to the release of the US CPI data and the potential negotiation talks about peace in Ukraine.

This could solidify the current bullish move, or the bears might retake control if the news is not so positive.