Despite recent market corrections, there’s potential for Shiba Inu (SHIB), a well-known meme coin, to experience a rebound. This optimism stems partly from the rapid growth of Shibarium, the Layer-2 blockchain associated with SHIB, which has been breaking records in terms of utility and transactions.
Shibarium has witnessed a remarkable increase in activity in the past five days. The network saw its transactions soar from 223,929,052 to 256,620,883, an impressive addition of approximately 33 million transactions. This was reported by the Shibariumscan explorer, a reliable source tracking the network’s activity. Of these, 254.704 million transactions have been successfully processed, with the remainder pending.
Another metric underscoring Shibarium’s expanding influence is the growth in the number of blockchain wallets connected to the network. The count recently reached 1,326,849, adding around 6,000 wallets, further solidifying the network’s robust user base. Moreover, daily transactions on Shibarium have shown a significant uptick, from 4.37 million to a substantial 6.19 million, indicating sustained user engagement.
However, SHIB has not been insulated from the volatility of the crypto markets. A detailed analysis of SHIB’s price trajectory reveals a noticeable downtrend, with the token slipping below the 50-day exponential moving average (EMA). This indicator is crucial as it often signals the long-term direction of a cryptocurrency’s price. SHIB is trading at $0.000010, with a 24-hour decrease of 2.43%.
SHIB’s proximity to the lower 26 EMA boundary raises concerns of a more pronounced downturn. The immediate support level at $0.00000950 is pivotal. However, a dip below this mark might lead to further declines.
Resistance levels are now hovering near $0.00001000. Surpassing this could indicate a positive trend reversal. On-chain metrics, including a rise in large transaction activities, suggest that major investors or ‘whales’ might capitalize on the lower prices to average their investments.
Despite these challenges, Shiba Inu has shown resilience in previous market cycles, often maintaining above-key support levels. This enduring strength, coupled with the potential positive impact of broader market developments like ETF approvals, holds promise for SHIB’s future.
The Moving Average Convergence Divergence (MACD) signals a bearish crossover, implying a potential downturn. In contrast, the Relative Strength Index (RSI) maintains a level above 50, pointing to neutral market sentiment. The Bollinger Bands suggest decreased volatility, hinting at possible consolidation ahead. These indicators, along with a neutral awesome oscillator, add layers to the complex yet hopeful narrative surrounding SHIB’s market movements.
