Shiba Inu (SHIB) is on the verge of a historic run as investors have accumulated a significant amount of Shiba Inu tokens in recent days. However, Meme Coin Basics remain worrying as they paint a bearish picture for SHIB.

Shiba Inu is preparing for a historic run in October

If history were to repeat itself, we could expect a parabolic Shiba Inu rally in October. Data from CryptoRank, the meme coin has always enjoyed monthly positive returns in October. While Bull market in 2021SHIB’s share price skyrocketed by 833% in October this year, while in October 2022 and 2023 the company saw modest gains of 10% and 6%, respectively.

Therefore, the Shiba Inu could see significant gains in October. Additionally, the outlook for the broader cryptocurrency market in October is also bullish. For example, Bitcoin has historically enjoyed the highest returns between October and December. The flagship cryptocurrency is expected to see another price rally from October.

Hence, the price of Shiba Inu will also augment as Bitcoin enjoys an uptrend. Data With IntoTheBlock Market Intelligence Platform shows that SHIB’s price correlation with BTC is currently 0.89, indicating a forceful positive price correlation between both assets. This proves that the meme coin will rise as Bitcoin goes up.

Investors Shiba Inu are already preparing for a historic run, as data from Cryptoquant Chain Analytics Platform shows that they have accumulated 770 billion SHIB between September 23 and 24. This figure represents the outflows that left exchanges during these two days. Moving coins out of exchanges indicates that these investors intend to hold them for the long term.

This tendency towards accumulation among these investors may also contribute to the price augment that the Shiba Inu may experience in October.

Fundamentals remain a concern

The basics of the Shiba Inu breed are concerning as they paint a bleak picture of this meme coin. Data from the Shiba Inu Shibburn tracker shows that coin burn rate has fallen by over 90% in the last 24 hours. Meanwhile, there has also been a 61% drop in token burns over the last seven days.

No network activity on Shibarium is another bearish fundamental factor. Data from the Shibarium explorer it appears that daily transactions in the Layer 2 network remain stagnant and below 10,000. The last peak was 11,360 transactions recorded on September 19. However, the next day, the number of daily transactions dropped to 8,000.

Low activity on Shibarium also contributed to the decline in the Shiba Inu burn rate. Base transaction fees on Shibarium are typically converted to SHIB and burned. However, with such low interest in the Layer 2 network, there is a limit to the number of SHIB tokens that can be burned.

At the time of writing, the Shiba Inu is trading at around $0.000014, up more than 3% in the past 24 hours, according to data data from CoinMarketCap.

Featured image created with Dall.E, chart from Tradingview.com