Shiba Inu (SHIB) has faced challenges recently and has mostly exhibited stagnant price movements within the past month. As the price of Bitcoin continues to be volatile, the performance of SHIB is being closely monitored by both investors and enthusiasts.
The Effects of Shibarium on SHIB!
It is noted that prior to the launch of the mainnet of Shibarium, SHIB showed promising signs while continuing at a price of $0.001 per holder. The price of SHIB experienced a significant increase, reaching the relevant level in the medium term. However, this rally was short-lived.
In addition, just before the launch of the mainnet, profit-taking became prominent and caused a sharp decline in the price of SHIB. The meme token lost more than 30% of its value and tried to recover after subsequent sales. However, a more positive development is that Shiba Inu’s Layer 2 network Shibarium has experienced rapid growth since its launch on August 28th. The network has surpassed the milestone of one million wallets, indicating an increase in user adoption and participation.
According to Shibarium’s data, this number is 1.25 million. The transaction activity on the network has also increased with approximately 3.3 million transactions since the launch of the Layer 2 protocol. However, despite the rising activity of Shibarium, it had limited impact on the token prices in the Shiba Inu ecosystem. Last month, SHIB saw a 6% decrease in price, and other tokens in the ecosystem, such as BONE, experienced double-digit losses.
Analyst Comment on SHIB
Amidst these developments, LUCIE, the Chief Marketing Analyst of Shiba Inu, expressed confidence in the potential of SHIB. In a tweet on Monday, LUCIE shared a vision about the market, suggesting that significant fluctuations in the price of Bitcoin could be a catalyst for altcoins like SHIB. The analyst stated:
My personal vision for the market is that we need to witness significant BTC price movements first. When the fear of missing out (FOMO) arises and new investors start pouring in money, we will gradually see altcoins gaining momentum. SHIB is one of the most listed altcoins, and I have no fear or concern about its potential.
In particular, the price of SHIB has continued to maintain stability above $0.000007. Although there was a slight increase over the weekend, breaking the key resistance level at $0.0000075 is still challenging. Meanwhile, the MACD can potentially signal a buying opportunity as the 10 and 20 exponential moving averages (EMA) converge while trending upwards.
