Shiba Inu Price Falls but Shibarium Milestone Breaks Record

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Over the weekend, the price of Shiba Inu coins saw a decline, potentially due to crypto traders focusing on the Official Trump matter instead.

Shiba Inu (SHIB) token retreated to $0.00002099, down by 9%.

Its withdrawal was similar to that of well-known meme tokens such as the Pudgy Penguin, Shiba Inu (Dogwhistle), Pop Cat, and Peanut the Squirrel.

Or, more casually:

Just like popular meme coins such as the Pudgy Penguin, Dogwifhat, Popcat, and Peanut the Squirrel, it saw a decrease in value.

As an analyst, one possible explanation I’ve observed for this market behavior could be the shift in trading strategies among some investors, who might have moved their resources from Shiba Inu to Official Trump (TRUMP). Notably, TRUMP boasts a fully diluted valuation surpassing $71 billion.

The Shiba Inu cryptocurrency could potentially see an increase in price due to several factors. Initially, Bitcoin (BTC) has been steadily increasing and is now approaching its record high of $108,200. If Bitcoin surpasses this all-time high, it’s likely that crypto investors will look towards other digital currencies such as Shiba Inu. Here’s the breakdown:

– Bitcoin has been on an upward trend and is nearly at its highest price ever ($108,200).
– If Bitcoin goes beyond this record high, it might attract crypto investors to explore other coins like Shiba Inu.

On Sunday, the rate at which Shiba Inu tokens were being burned each day saw a significant increase. As reported by Shibburn, this jump was approximately 950%, reaching over 30 million SHIB tokens. This brings the total number of Shiba Inu tokens that have been burned to an impressive 410 billion.

Destroying tokens refers to the action of removing them from circulation and moving them to a wallet that cannot be accessed.

Last week, Shiba Inu’s layer-2 network, Shibarium, surpassed a significant threshold when its transaction count exceeded 800 million on Friday. As per Shibariumscan, this count has since risen to 815 million, coinciding with an increase in the number of addresses to approximately 2.1 million.

The achievement of Shibarium slightly influences the cost of Shiba Inu tokens, as a portion of the BONE transaction fees gets transformed into SHIB and then destroyed.

Over the past week, there’s been a 54% increase in the number of daily active addresses using Shiba Inu, indicating a rise in its user base or adoption.

Shiba Inu price technical analysis

As an analyst, I’ve observed that the Shiba Inu (SHIB) price experienced a robust upward surge last week, signifying a bullish breakout. However, this upward momentum has encountered substantial resistance around $0.000025, indicating a potential ceiling for further price increases at this level.

That was a crucial level since it was also the highest swing on Jan. 4. 

On the optimistic front, Shiba Inu (SHIB) has continued to stay above its 200-day moving average. Additionally, it has demonstrated a break and retest pattern – this means that after surpassing a resistance level, it dips back to test this level again before continuing with its upward trend.

Here, the Shiba Inu token has climbed beyond the upper boundary of the falling wedge chart configuration and has since returned to test this level. This could indicate a possible reversal, but further growth would be confirmed if the coin surpasses the crucial resistance at approximately $0.000025.

Such a move will point to more gains, potentially to $0.000033, its December high.

Originally conceived as a humorous token named Shiba Inu back in August 2020 by an anonymous figure known as “Ryoshi,” this digital currency has transformed from a mere meme coin to a versatile and purpose-driven environment.

This encompasses ShibaSwap, a decentralized platform for trading, storing, and receiving incentives, as well as Shibarium, a Layer 2 network providing quicker transactions and reduced transaction costs.

This ecosystem includes the LEASH and BONE tokens for decision-making and staking purposes, while it’s currently working on creating SHIB: The Virtual World, a space where people can purchase digital real estate.

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2025-01-19 16:56