Shiba Inu Enters Accumulation Zone Amid 493% In Shibarium Transaction Fees
June 24 2024 - 5:00PM
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The current Shiba Inu price action might be leaving some investors
wanting, particularly as the crypto has now extended its 30-day
losses by over 30%. However, recent on-chain data and technical
analysis indicate that the patience is about to pay off. To be more
specific, the current price downturn has seen Shiba Inu entering
the accumulation zone, which could signal the start of the next
bull run. At the same time, a concurrent 493% increase in
transaction fees within the Shibarium network suggests it could be
the ideal time for investors to load up. Shiba Inu Price Hits
100-Day Low As Bears Take Control The past few weeks have been a
bloodbath for Shiba Inu (SHIB) holders. After rebounding at the
$0.000022 support and spiking briefly to reach $0.00002756 in the
last week of May, the popular meme coin has plunged over 30%,
briefly crashing below $0.000017 this week. This brutal selloff has
dragged SHIB to a 100-day low, wiping out billions from its market
cap. Related Reading: Bitcoin Crash: Crypto Analyst Reveals Why
Price Could Drop To $52,000 Experts have blamed this fall on
investors pulling out of meme coins. Shiba Inu wasn’t left out, as
the meme coin also witnessed major transfers to crypto exchanges.
From the price side of things, SHIB’s decline means traders now
have the opportunity to buy at its current low prices, which may
herald the reversal of the bearish trend. You would think with
SHIB’s price taking a beating lately, activity on the network would
be slowing down. Surprisingly, that’s not the case at all.
Recent data from Shibariumscan indicates that transaction fees on
the Shibarium layer-2 network have skyrocketed by 493% last week.
The massive surge in transaction fees came from increased
transaction activity on the network. Notably, the number of new
transactions moved from 5,865 at the beginning of the week to
16,337 at the end of the week, a 178% increase. Although
transaction fees on Shibarium are paid in BONE tokens, a portion of
the tokens are converted into SHIB and then burned. This, in turn,
reduces the amount of SHIB tokens in circulation. What’s Next For
SHIB? At the time of writing, SHIB is trading at $0.00001702 and
seems to be consolidating. Experts are now divided into different
schools of thought about the future of meme coins, including SHIB.
According to Ki Young Ju, CEO of CryptoQuant, the current downtrend
suggests meme coin dominance in the altcoin market could finally be
over. Related Reading: Polygon (MATIC) Turns Bullish After
Losing Streak – Is A 1,000% Rally Possible From Here? On the other
hand, analyst Javon Marks believes Shiba Inu still has room to
break to the upside, and the recent pullback could also be a
contributing factor. Marks asserts that Shiba Inu is still up by
100% since its last bullish wave and it has the potential to go up
by another 294%. Price targets are at $0.000081 and $0.0001553.
Featured image created with Dall.E, chart from Tradingview.com
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