Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
Shiba Inu (CRYPTO: SHIB) is undergoing a market correction, but analysts remain optimistic about the coin’s future prospects, bolstered by a significant increase in daily transactions.
What Happened: Yomi, a prominent crypto analyst, shared his analysis of Shiba Inu’s market performance in a thread on X (formerly Twitter). He noted that the coin is retracing to key bull market levels, such as the 0.5 Fibonacci (FIB) retrace and the bull market support band (20W Simply Moving Average (SMA) – 21W EMA).
Despite the correction, Yomi highlighted two crucial developments that could signal a bullish future for Shiba Inu. First, the coin is experiencing a bullish monthly cross on the monthly AZO momentum indicator for the first time. Second, the Monthly MACD is on the verge of crossing the zero line, another unprecedented event for the coin.
Yomi advises crypto enthusiasts to “watch out for” Shiba Inu in the coming weeks and months, as his analysis suggests that the coin may be preparing for a substantial bull run, despite the current market correction.
Also Read: Shiba Inu Up 3% As Daily Transactions Blast 7,351% Higher In Only Four Days
Why It Matters: Shibburn data revealed a 489.9% surge in Shiba Inu’s burn rate over the past 24 hours, with one transaction involving the burning of 9.2 million coins and another involving 1.4 million coins. In total, Shiba Inu has burned 774 million coins in just one week.
Moreover, Shibarium Scan data shows that daily transactions have more than doubled, reaching 958,440 as of April 14, compared to 419,520 on April 13. This marks the first time since March 16 that transactions have approached the $1 million mark.
Despite a 20% weekly loss, IntoTheBlock data reveals that 57% of Shiba Inu holders are still profitable, and 75% of holders have been accumulating the coins for more than a year.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: ‘Dogecoin Killer’ Shiba Inu Up 3.5% On 48,650% Burn Rate Explosion: ‘Working Like A Dog,’ Says Lead Developer
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