• 28 May, 2024
Market News

Shibarium’s Rising Activity Sparks Interest Amid SHIB’s Price Correction

Recent reports asserted that Shiba Inu’s Layer 2 network, Shibarium, experienced a notable surge in activity last weekend. The daily count of active accounts completing at least one transaction rose by 52% between November 11 and 13. Additionally, the number of new transactions on Shibarium saw a 19% increase during the same period. The network reached 3.74 million transactions completed by 30,000 accounts since its launch.

As per data from CoinMarketCap, the heightened activity from Shibarium coincided with a peak in SHIB’s price at $0.0000095 on November 11, marking the highest level in the past two months. A bullish sentiment remains evident in SHIB’s spot market despite a subsequent 10% decline, with the token trading at $0.00000867 at press time.

Despite a slight correction and profit-taking activity observed last weekend, key momentum indicators reveal that SHIB’s overall trend remains strong and upward. The Directional Movement Index (DMI) on a 24-hour chart indicates the positive directional index (green) securely above the negative directional index (red), signaling a sustained uptrend until a significant shift in sentiment occurs.

Day traders continue to accumulate SHIB tokens, with the Relative Strength Index (RSI) at 61.62 and the Money Flow Index (MFI) at 62.44, indicating that buying activity is outpacing token distribution in the spot market. However, the Chaikin Money Flow (CMF) has begun to descend, suggesting a gradual decrease in liquidity flow due to the increasing momentum of profit-taking activity.

As of press time, SHIB’s CMF remains above the zero line at 0.15, indicating some resilience in the market. Nevertheless, should this indicator fall below the zero line into negative territory, it could signal a potential severe decline in SHIB’s price. Experts advise caution, emphasizing the need to monitor key indicators closely for any significant shifts in market sentiment.

Shibarium’s rising activity has provided an intriguing backdrop to SHIB’s recent price movements. While the bullish trend persists, the evolving dynamics, especially the increasing profit-taking activity and the descending CMF highlight the importance of vigilant market monitoring for investors navigating the volatile world of meme tokens.

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