Shiba Inu Sliding: Why is $SHIB Price Dumping Following Much Building?
With Shibarium launch showing negative metrics, SHIB price continues to slip. Can it recover?
Key Takeaways
- Shibarium achieved a milestone of 3 million transactions today.
- However, other on-chain metrics do not paint a positive picture.
- Chart analysis indicates the potential for further downside in the price of SHIB.
Several months following the testing phase, Shibarium, an Ethereum Layer-2 (L2) solution, was introduced. What sets it apart is its innovative Proof-of-Participation (PoP) method for selecting validators based on their crypto holdings.
Shortly after its launch on August 28, there were speculations about technical issues with the bridge. The Shibarium team swiftly addressed these concerns through a blog post , clarifying that the problems had arisen due to a surge in transactions and user activity during Shibarium’s initial release.
Today, Shibarium has achieved a remarkable milestone, surpassing 3 million transactions within just 40 days since its inception. This achievement underscores the project’s rapid growth and highlights Shiba Inu‘s increasing prominence in the blockchain landscape. However, it’s worth noting that not all metrics indicate such growth.
On-chain Data
Recent data from Shibariumscan paints a picture of declining activity within the Shibarium network. Over the past month, active accounts have dwindled significantly, plummeting from 1,015 to a mere 178. Furthermore, the daily influx of new accounts has sharply declined, now registering at just 17.
BoneShibaSwap’s BONE token, which holds voting rights within the Shiba Inu network, has experienced a substantial drop in transfers, decreasing from 7,482 on September 24th to a mere 727 by October 8th.
Despite high expectations for Shibarium’s launch to drive Shiba Inu adoption, the actual results have fallen short of these hopes. Despite initial optimism, the 30-day weighted sentiment for SHIB, which assesses market sentiment by balancing positive and negative feedback, has plunged to -0.987. This indicates a prevailing pessimistic outlook for the project.
SHIB Price Analysis
Since reaching its all-time high of $0.000090 on October 28, 2021, the price of the SHIB token has been in a bear market. It declined to $0.0000068 on June 18 of the following year, marking a significant decrease of nearly 92%.
This low closely aligns with the levels from which the previous bull cycle commenced, serving as a catalyst for the subsequent recovery. This upward momentum propelled the price to $0.0000175 on August 14, 2022, initiating another downtrend, albeit with a slower pace of decline.
During this period, a descending channel took shape, with the price consistently forming slightly lower highs and lower lows. On June 10, it established a new low for the bear market at $0.0000060, marking the onset of the most recent upturn. This upswing once again brought the price to test the descending resistance trendline, reaching $0.000010 on August 12 of this year.
Analyzing the 4-hour chart and scrutinizing the wave structure beginning on June 10, it becomes evident that this period most likely represents a corrective ABC increase, forming a component of the broader corrective WXYXZ count. Consequently, as this phase concluded, a new downtrend emerged, indicating the likelihood of another bear market low.
The movement observed from August 12 initially exhibited sharp fluctuations, concluding on September 11 at $0.0000070, at which point the price entered a sideways consolidation phase. However, recent developments suggest a renewed downward movement, as the price breaches its horizontal support.
In the event of a continued downtrend, which appears probable, the next significant support level to watch for would be approximately around the $0.0000045 area, corresponding to the descending support level.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multip
