Shiba Inu (SHIB) has yet to recover like the overall market and faces resistance at $0.00001.
Shibarium trading volume surged 140%, providing support for SHIB's decline.
SHIB’s volatility reached 108%, signaling potential for significant movement.
While the market has rebounded to pre-crash levels, the memecoin sector, especially Shiba Inu, has yet to show such a recovery trend. Recently, SHIB price has struggled to attract enough buying momentum, and sellers have the upper hand amid declining open interest. Nonetheless, with the recent surge in SHIB volatility, significant volatility may occur in the coming hours as SHIB price seeks to retest its support levels.
Shibarium milestone sustains buying demand for SHIB
Shiba Inu continues to witness long liquidations with around $200,000 worth of positions being liquidated by longs in the past 24 hours. The surge came after SHIB price rejected the much-anticipated $0.00001 level. However, the decline has not intensified as Shibarium’s trading activity provided buying momentum for SHIB.
Shibarium, Shiba Inu’s Layer 2 blockchain platform, has seen an uptick in transactions over the past 24 hours. According to Shibarium Explorer, the number of transactions jumped from 4.37 million to 6.19 million. This represents a single-day increase of more than 140%.
In less than five months, the network has processed an impressive 260 million transactions and created about 2.4 million blocks. These transactions were executed by 1.3 million different wallet addresses.
The surge in Shibarium trading volume is the savior of the decline in Shiba Inu trading volume. Data shows that the daily trading volume of Shiba Inu has dropped from 5,100 to 4,790. Nevertheless, SHIB price may see a sharp rise or fall, as its volatility has reached an annual peak of 108%. This high volatility level indicates a fierce struggle between buyers and sellers to maintain the SHIB price at around $0.00001.
The recent increase in Shibarium trading activity has brought new impetus to the Shiba Inu ecosystem, maintaining the recovery momentum.
What’s next for SHIB price?
Shiba Inu continues to face bearish activity after breaking above the critical $0.00001 level. As a result, it dropped towards the immediate Fibonacci channel and currently favors short positions. As of the time of writing, SHIB price is trading at $0.0000095, down more than 3.7% in the past 24 hours.
The bulls are vigorously protecting the $0.000009 support as a decline might trigger a surge in selling confidence. While the bulls attempt to initiate a recovery rally, they are likely to face stiff resistance at the 20-day exponential moving average (EMA) and near $0.00001. If the SHIB price turns down from $0.000009, it is likely to consolidate around $0.0000082 and this price point is likely to attract buyers.
For a bullish sign to signal an end to the current downtrend, the RSI needs to correct upwards and escape the oversold zone. The bulls need to push the price higher and keep it above the EMA20 level and the $0.000011 resistance area with an eye on gains above $0.000012.
