2 Reasons Why the Shiba Inu (SHIB) Price Might Rally Soon

TL;DR

• SHIB is deep in red territory on a weekly scale, but certain elements suggest not everything is doom and gloom.
• Earlier this week, the meme coin ranked among the top 10 cryptocurrencies, drawing the most bullish sentiment. However, retail enthusiasm doesn’t always guarantee price gains.

Time to Pump Again?

Shiba Inu (SHIB) has followed the overall correction of the crypto space, with its price dipping by 9% in the past week. Its market capitalization currently hovers at around $7.3 billion, which is far below the local peak in December when the figure reached almost $20 billion.

Despite the negative performance, some important factors suggest a rebound could be on the horizon. The SHIB exchange netflow, which in the past week has been predominantly negative, is one such example. This signals that investors have been shifting from centralized platforms toward self-custody methods, which in turn reduces the immediate selling pressure.

Currently, there are around 85.2 trillion tokens stored on exchanges, which represents a massive decline from the 140.7 trillion witnessed at the start of the year.

Next on the list is the resurgence of Shibarium. Daily transactions processed on Shiba Inu’s layer-2 scaling solution dipped below 4 million on August 18 and August 19 but shot to 4.8 million on August 20, the highest figure observed since early February 2025. 

Each transaction on Shibarium involves burning SHIB tokens, which can be beneficial for the price if demand doesn’t head south. Moreover, the increased activity could be a sign that the Shiba Inu ecosystem is gaining additional adoption. 

Some analysts and popular figures in the crypto space believe Shibarium’s development is of utmost importance for a potential SHIB bull run. Not long ago, the Bitcoin advocate Jeremie Davinci said:

“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.”

The Sentiment is Bullish, But There’s a Catch

According to CoinMarketCap, Shiba Inu was among the top 10 cryptocurrencies attracting the most bullish sentiment on August 20. 

While this may seem encouraging for SHIB enthusiasts, the crypto market often behaves in unexpected ways. History shows that prices can move opposite to crowd sentiment, meaning retail optimism could actually signal potential trouble ahead for SHIB.