As a seasoned researcher with years of experience in the cryptocurrency market, I have seen many trends come and go, but Shiba Inu has consistently intrigued me. Despite its recent price crash, I am optimistic about SHIB‘s future. The growth of Shibarium, its layer 2 network, is a testament to its robust ecosystem that continues to thrive even in bearish market conditions.
Despite a significant drop of more than 30% in Shiba Inu’s price from its December peak, its ecosystem is thriving, suggesting an upcoming recovery. The revival of SHIB price will likely be bolstered by its futures open interest and the NPL indicator, which indicates a widespread sell-off or capitulation.
Shiba Inu Price To Be Boosted By Shibarium Growth
On Tuesday, the value of Shiba Inu was at $0.00002225, significantly lower than its peak this month which reached $0.000033. The recently introduced Shibarium, its layer 2 network from earlier in the year, might serve as a significant factor propelling the SHIB price.
Based on data from Shibarium Scan, the network has persistently performed well despite a general downturn in the crypto market. The count of active addresses has surged and reached over 2.02 million, an indication of its prosperity. Furthermore, the number of completed transactions within Shibarium has climbed to more than 692 million, suggesting it will soon break the 700 million threshold in the coming weeks.
The expansion of the Shibarium network is beneficial for the value of Shiba Inu, as some transaction fees within the ecosystem are used towards increasing the token’s burn rate. According to ShibBurn, the burning rate of SHIB tokens significantly increased following the debut of Shibarium.
Leading Indicators Point to a Rebound
It’s anticipated that the price of Shiba Inu may rebound based on certain widely-used indicators. Notably, the open interest in the futures market has reached a monthly low for Shiba Inu, and historically, a cryptocurrency often experiences a surge when interest is minimal. For instance, since the open interest hit a bottom of $38 million on November 6, the value of SHIB has increased by approximately 75%.
Additionally, it’s worth noting that the realized profit/loss indicator suggests a significant sell-off not seen in over a month. This could indicate an increase in investors selling the coin at a loss, which is typically viewed as a bullish sign because it may signal a mass exit from the market by weaker hands, potentially leading to price recovery.
According to recent data by Santiment, the number of active Shiba Inu wallets has decreased from its peak this month of 239,000 to the current figure of 197,000. Historically, cryptocurrencies tend to recover when there’s a widespread selling among short-term investors and speculators, as it may indicate that the market has reached an oversold state.
Shiba Inu Price Hammer Points To A Rebound
Glancing at SHIB, it seems uncertain that the token will recover, as it’s fallen below its 50-day moving average. However, on the bright side, Shiba Inu has shaped a hammer candle pattern, characterized by a small body and a lengthy lower shadow. Hammer patterns are often indicative of potential reversals in price trends.
The coin has received significant backing at the rising trendline connecting its lowest points since August. If it manages to surpass its 50-day Moving Average, this would signal a bullish breakout. This move suggests a potential rise towards $0.00003380, which is 50% higher than its current value.
If the price falls slightly below the rising trendline at approximately $0.000019, it could contradict the optimistic outlook and suggest a continuation of bearish movements instead.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- EUR CAD PREDICTION
- APU PREDICTION. APU cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- PlayStation and Capcom Checked Another Big Item Off Players’ Wish Lists
- USD GEL PREDICTION
- POL PREDICTION. POL cryptocurrency
- EUR INR PREDICTION
- Black Ops 6 Zombies Actors Quit Over Lack Of AI Protection, It’s Claimed
2024-12-24 17:04