The reason for the surge in Shiba Inu prices is revealed, SHIB players should take a look! !
The price of Shiba Inu (SHIB) has suddenly risen sharply. The recovery started on September 26, and this impressive growth has continued until today. In just two days, the value of SHIB has risen by about 20%.
In this article, we investigate the reasons behind the significant price increase and explore the factors that drive the price increase.
Shibarium transaction costs have risen sharply
The first reason for the price increase is the increasing activity on the Shibarium network, which has led to rising transaction costs and faster destruction. Transaction fees on Shibarium, the second-layer network developed by Shiba Inu manufacturers, rose to 438 on September 26. Compared with the low of 27 at the beginning of this month, this increase is impressive, with an increase of no less than 1,522%. The increase in costs indicates that there is more activity on the network, which is good for the value of SHIB. Part of these gains are converted into SHIB and then destroyed, removing these tokens from circulation. Data from Shibburn shows that the number of Shiba Inu coins burned in the past 24 hours increased by 640%, with 5,555,360 tokens burned.
Memecoin rally strengthens SHIB’s gains
Shiba Inu’s price rise comes amid a broader rally in memecoins. Most meme coins have gained more than 10% in the past 24 hours, increasing the category’s total market cap to $52.9 billion. For example, PEPE’s value has risen by 16%, while BONK has risen by 15%. Memecoins often exhibit parallel price movements, with a rise in one coin often pulling others up.
Shiba Inu Breaks Important Resistance Level
In addition to increased Shibarium activity and a broader memecoin rally, Shiba Inu’s price gains are also supported by positive technical signals. The coin formed a so-called double bottom pattern and broke through the $0.000016 resistance level, which was the highest level since August 24. Furthermore, SHIB has broken above a falling trendline connecting the highest highs since July 16. The relative strength index (RSI) continues to rise, indicating a strengthening of buying momentum. These developments suggest that the price of Shiba Inu could rise further, especially now that the $0.00002 resistance level has been breached
