A pseudonymous cryptocurrency analyst has recently suggested that the meme-inspired cryptocurrency Shiba Inu ($SHIB), which recently experienced a rally that saw its price move up over 8.6% in the last 30 days, could soon entering an overarching downward trend.
According to the analyst Cheds, who shared his insights with his over 300,000 followers on the microblogging platform X (formerly known as Twitter), SHIB’s upswing could have been an enticing lure for SHIB bulls who were hoping the meme-inspired cryptocurrency would keep on rising. Per his words there’s now a potential setup for a short position in the near future.
Furthermore, Cheds highlights that the bullish momentum could be waning, pointing to a potential blow-off top on the four-hour chart. The cryptocurrency is now notably down over 5% in the last 24-hour period, amid a slight decline in several altcoins. BNB, for example, saw its value drop 1% while SHIB rival Dogecoin ($DOGE) lost 0.5% of its value.
As CryptoGlobe reported, a staggering 3.3 trillion tokens of the meme-inspired cryptocurrency worth over $28 million, have been pulled out of centralized cryptocurrency exchanges throughout the month of July in a large-scale withdrawal analysts are seeing as a drop in available supply.
Tokens moving off of cryptocurrency exchanges is generally seen as a positive for the cryptocurrency, as it shows there’s a smaller amount of supply available to meet demand on exchanges. If enough supply is removed from exchanges and demand grows, the price of the cryptocurrency should rise.
As CryptoGlobe reported, the developers behind SHIB have recently rolled out the beta version of the Shibarium bridge, an eagerly awaited test phase that allows the public to give the layer-2 scaling solution a try.
The bridge will allow users to move their assets from the Ethereum network onto Shibarium when it launches, allowing them to take full advantage of the layer-2 scaling solution that is set to remove tokens from circulating to reduce supply and help boost the price.
This is known as a token burning mechanism, in which tokens are sent to wallets that can only receive tokens but not send, also called Dead Wallets.
Featured image via ´Pixabay.
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