The Shiba Inu (SHIB) token, known for its past volatile upswings following its meme token status, has recently shown lackluster performance in the cryptocurrency market. Despite an overall bullish trend in the past, SHIB’s growth has now plateaued, witnessing a marginal 9.5% increase over the preceding week but losing momentum in the subsequent days.
Market Movement of SHIB
Presently, SHIB is trading at $0.00003047, accounting for a market capitalization exceeding $17.9 billion. Its gradual price increase of 2% in the past day contrasts with a declining social presence, as suggested by data from Santiment, which indicates a downtrend in SHIB’s social volume and sentiment.
Conversely, the Shibarium Layer 2 network, which operates in parallel to the Shiba Inu token, shows remarkable network activity. Shibarium has processed a staggering amount of over 400 million transactions, nearing 4 million blocks with a daily transaction count of 58,000, and has amassed 1.38 million wallets.
Shibarium’s Impact on SHIB’s Value
While Shibarium’s achievements are significant, they may not immediately stimulate SHIB’s price. With the network-value-to-transaction (NVT) ratio experiencing a slight uptick and SHIB supply on exchanges increasing, signs point towards a potential price decline. Moreover, the supply distribution by top wallets hints at rejection, compounding selling pressure.
Points to Consider
- SHIB’s current market performance is not as dynamic as Shibarium’s transactional growth.
- The NVT ratio increase and exchange supply dynamics could signal a future decline in SHIB’s price.
- Despite unfavorable metrics, the RSI suggests potential short-term volatility for SHIB.
While technical indicators like Bollinger Bands show stability, reducing the chance of a significant price surge, the relative strength index (RSI) has moved above a neutral threshold, hinting that the token’s price might see increased volatility shortly.