July and August were quite successful for the self-proclaimed Dogecoin killer, with its price closing both months in the green.
However, some important evidence suggests that September may not be as beneficial and could result in a southward shift.
Worrying signals
The first item of concern on the list is the Shiba Inu burn rate, which has decreased by 6% on a monthly scale. Data watch that less than 600 million tokens were sent to a zero address throughout August, an amount whose USD equivalent is negligible.
The burning mechanism aims to reduce the overall supply of the meme coin and potentially make it more valuable, but little to no activity on this front poses a serious obstacle to this mission.
Next comes the stalled activity of Shibarium. The Layer 2 scaling solution was leveraged last year and since then the number of daily transactions processed has dropped to a few hundred or even thousands (at the most).
This feature has been repeatedly called important to the overall advancement of the Shiba Inu ecosystem and can have a positive impact on its price.
Finally, we will mention the seasonal element. September was a mostly poor month for SHIB, with its price ending the period in the red three out of five times. In 2022, July and August were green (just like this year), but the following month stopped the uptrend. It remains to be seen whether history will repeat itself.
The good side
Not all aspects suggest that the meme coin could see a downward trend in the coming weeks.
According to CryptoQuant, the amount of SHIB held on exchanges has declined over the past month, indicating that investors continue to abandon centralized platforms in favor of self-custody. This, in turn, reduces immediate selling pressure and could pave the way for possible further price rises.
The article 3 Reasons Why Shiba Inu (SHIB) May Dive This Month appeared first on CryptoPotato.