Shiba Inu price has crashed by 60% from its November highs. This plunge has coincided with the price action of other meme coins. SHIB, however, is showing signs of a potential rebound after falling to a key support and forming a falling wedge pattern. A potential catalyst will be that Shibarium is about to hit a 1 billion transaction milestone.
Shiba Inu Price May Get Boosted by Shibarium Transactions
SHIB price has one catalyst that may push it higher in the next few days: Shibarium transactions. Data by ShibariumScan shows that the number of completed transactions in the layer-2 network has jumped to 947 million, meaning that it will soon hit the 1 billion milestone. As this CoinGape report wrote, Shibarium transactions hit the 500 million milestone in November.
The number of Shibarium addresses has continued rising, moving from 100 million in January to over 124.5 million today. That is a sign that this address figure may get to 125 million this month.
Shibarium’s success is a good thing for Shiba Inu price because some of the BONE fees generated in the network are converted into SHIB and burn. As such, Shiba Inu’s burn rate will grow as the network becomes more successful.
However, Shibarium has more room to go to catch up to other popular layer-2 networks like Base and Arbitrum. It has a total value locked of just $2 million, much lower than mainstream layer 2 blockchains.
SHIB Price Technicals Analysis: Bullish Patterns are Emerging
Shiba Inu coin price is flashing bullish signs on the daily chart. First, the Average Directional Index, a popular indicator used to measure the strength of a trend, has pointed downwards, a sign that the downtrend is losing momentum.
Second, the Relative Strength Index (RSI) has formed a bullish divergence pattern as it moved slightly above the descending trendline that connects the highest swings since December 1. The Percentage Price Oscillator (PPO), a unique form of MACD, has also formed a bullish divergence pattern.
Most importantly, Shiba Inu price has slowly formed a falling wedge pattern. This pattern comprises two descending and converging trendlines, and a bullish breakout forms when they are about to meet. This convergence is happening at a crucial level since the price failed to move below the price several times in 2024.
Shiba Inu Targets
Therefore, these technical factors point to an eventual SHIB price breakout, potentially to last year’s high of $0.00003333, up by 150% above the current level.
The bullish SHIB price forecast will become invalid if the coin crashes below the psychological point at $0.000010.
Frequently Asked Questions (FAQs)
While Shiba Inu price has crashed in the past few months, the rising Shibarium transactions may lead to a strong comeback in the near term.
The other potential catalysts for the Shiba Inu price are that it has formed a bullish divergence and a falling wedge pattern on the daily chart.
SHIB price may surge to $0.000033 if the bullish breakout happens. This is a key level because it is the highest level in November last year.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/how-high-can-shiba-inu-price-get-as-shibarium-nears-1b-milestone/
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