After weeks of bullish trends, the entire cryptocurrency market has somewhat stagnated, and Shiba Inu (SHIB) has displayed a similar price movement. Although the meme token’s price movement was not impressive, the much-discussed Layer 2 Shibarium has shown impressive performance. According to CoinMarketCap, the value of the world’s second-largest meme token increased by about 9.5% over the last seven days. However, the momentum has slowed down in the past few days.
SHIB Price Analysis
In the last 24 hours, the value of SHIB has only increased by 2%. At the time of writing, the meme token is trading at $0.00003047 with a market value of over $17.9 billion. The slow-moving price action has negatively affected SHIB’s social metrics. Analysis of Santiment data revealed that SHIB’s social volume has decreased over the past week. As can be understood from the drop in weighted sentiment, the surrounding downtrend has also increased.
While Shiba Inu remains stagnant, the network activity of Shibarium has increased. A glance at Shibariumsca.io data revealed that L2 has already processed over 400 million transactions. At the time of writing, the total number of transactions exceeded 413 million. The number of processed blocks was also high, with only 40,000 blocks remaining to reach the 4 million mark. During this period, the daily number of transactions was over 58,000, and the total number of wallets reached 1.38 million.
Expectations for Shibarium
Although Shibarium’s performance is noteworthy, SHIB may not respond positively to it anytime soon. Analysis of Glassnode data revealed that Shiba Inu’s network-value-to-transaction (NVT) ratio recorded a slight increase on March 28. An increase in the metric could indicate that an asset is overvalued and may signal a price drop. SHIB’s supply on exchanges has slightly increased after a recent decrease. Additionally, the supply is held by top addresses that have rejected it.
Both of the mentioned metrics indicate that there is high selling pressure on Shiba Inu and also that its price could drop. According to Bollinger Bands, SHIB’s price was in a less volatile zone, which minimized the likelihood of an upward price movement. However, the relative strength index (RSI) rose above the neutral level. This situation suggests that despite the negative indicators, SHIB’s price action could become volatile in the coming days.
