The recent price action of Shiba Inu (SHIB) has had some investors feeling uneasy, particularly as the token has extended its losses to surpass a 30% decline over the last month.
However, on-chain data and technical analysis suggest that this downturn may be a precursor to a bullish recovery.
A staggering 493% increase in transaction fees on the Shibarium network highlights a surge in network activity, making now an intriguing time for potential investors.
Shiba Inu’s recent price performance could signal a buying opportunity as network activity intensifies.
Shiba Inu Retreats to 100-Day Low, Bears Dominate
Recent weeks have been tough for Shiba Inu (SHIB) investors. After making a brief recovery to $0.00002756 in late May, SHIB has plunged over 30%, briefly dipping below $0.000017. This downturn has marked a 100-day low for the cryptocurrency, erasing billions from its market capitalization.
Market analysts attribute this sharp decline to investors pulling out of meme coins, including Shiba Inu, causing major outflows to crypto exchanges.
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However, this downward trend could present a buying opportunity. Contrary to what one might expect during such a slide, transaction activity on the Shibarium layer-2 network has surged.
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Recent data from Shibariumscan reveals that transaction fees on the network have increased by 493% over the last week. The surge in fees is due to an uptick in transaction volume, with the number of new transactions soaring from 5,865 at the start of the week to 16,337 by week’s end—a 178% increase.
It’s worth noting that while transaction fees on Shibarium are paid in BONE tokens, a portion of these tokens are converted into SHIB and subsequently burned, reducing the circulating supply of SHIB tokens.
The Road Ahead for Shiba Inu
As of now, SHIB is trading at $0.00001702 and appears to be in a phase of consolidation. The outlook for meme coins, including SHIB, is currently divisive among experts. Ki Young Ju, CEO of CryptoQuant, suggests that the ongoing downtrend might signify the end of the meme coin dominance in the altcoin realm.
Conversely, analyst Javon Marks posits that Shiba Inu has the potential for upward momentum. Marks highlights that despite the recent pullback, SHIB is still up by 100% since its last bullish phase and could see gains upwards of 294%. Marks places price targets at $0.000081 and $0.0001553 for the next potential bull run.
Conclusion
In summary, while Shiba Inu’s current price action might concern some investors, the notable increase in Shibarium network activity suggests a latent bullish potential. Whether SHIB can break out of its current bearish trend remains to be seen, but the current low prices may offer a strategic entry point for those looking to invest in the crypto market.
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