While Shiba Inu (SHIB) had been relatively slow to respond to recent crypto market rallies, it’s now showing signs of joining the meme coin euphoria that has surrounded tokens like Pepe Coin (PEPE), Floki Inu, and Dogelon Mars.
SHIB’s price has surged by 4% in the past 24 hours and 12% over the past week, currently trading at $0.000007667.
Shibarium’s Remarkable Growth and Impact
A significant factor contributing to SHIB’s upward trajectory is Shibarium, an Ethereum Layer 2 protocol dedicated to the Shiba Inu ecosystem. Despite facing challenges during its launch in August, Shibarium has achieved remarkable growth. It has completed 1.325 million blocks at an average block time of 5 seconds.
Wallets created on the network have surged to 1.25 million, processing over 3.5 million transactions. As a Layer 2 scaling protocol, Shibarium offers significantly lower transaction costs compared to the main Ethereum network, currently averaging at 1.81 Gwei, with daily transactions averaging around 12.68k.
Shiba Inu Burn Rate and Tokenomics
While Shiba Inu aims to reach $0.00001, the burn rate of SHIB tokens has experienced a 72% drop in the last 24 hours, totaling 28 million tokens. This burn program is crucial for SHIB, considering its enormous total supply of 589 trillion tokens.
In addition, Shibarium plays a vital role in the token burn program, with roughly 70% of transaction fees on Shibarium being used to burn SHIB. Projections suggest that Shibarium could contribute to burning 111 trillion SHIB tokens annually, approximately 20% of the circulating supply.
Technical Analysis and SHIB’s Bullish Outlook
Shiba Inu’s price is currently above two critical levels: the 21-day Exponential Moving Average (EMA) and the ascending trendline on the daily chart. The Moving Average Convergence Divergence (MACD) has provided a buy signal, reinforcing the bullish outlook and indicating that the uptrend is in its early stages. This suggests that SHIB may be on track to approach $0.00001 by the end of the week.
Potential Support and Resistance Levels
If SHIB manages to maintain its bullish momentum, further support may emerge from the 100-day EMA. A daily close above the 100-day support at $0.00000768 could attract more traders to consider buying SHIB. In this scenario, profit-booking could start around the 200-day EMA, but highly bullish traders might aim for gains above $0.00001.
However, on the downside, the ascending trendline now serves as support, ensuring that Shiba Inu retains its bullish outlook. However, if losses intensify, SHIB could dip further, possibly reaching liquidity at the 21-day EMA or the double-bottom support level around $0.00000676.
Lastly, as Shiba Inu experiences growing adoption and technical advancements, the road to $0.00001 appears increasingly promising, offering both traders and the SHIB community reason for optimism.