Shiba Inu price retreated over the weekend as crypto traders’ attention may have turned to official Trump.
Shiba InuSHIB) the token retreated to $0.00002099, down 9%.
Its retirement mirrored that of other popular coins like Pudgy Penguins, Dogwifhat, Popcat and Peanut the Squirrel.
A potential reason for this price action is that some traders switched from Shiba Inu to Official Trump (ASSET), which has a fully diluted valuation of over $71 billion.
Shiba Inu has several catalysts that could push its price higher. First, Bitcoin (BTC) continued to grow and moved closer to the all-time high of $108,200. A breakout from its all-time high will likely attract crypto investors to other altcoins, including Shiba Inu. See below.
Second, the daily Shiba Inu combustion rate continued to increase on Sunday. According to Shibburnthe burn rate jumped 950% to over 30 million SHIB tokens, bringing the total number of Shiba Inu burned to 410 billion.
Burning is a process that reduces the number of tokens in circulation by sending them to an inaccessible wallet.
Third, Shibarium, Shiba Inu’s layer 2 network, hit a key milestone last week as its transaction count surpassed 800 million on Friday. According to Shibarium scannetwork transactions now stand at 815 million while the number of addresses stands at 2.1 million.
The success of the Shibarium has a slight impact on the price of the Shiba Inu because a portion of the BONE fee is converted to SHIB and incinerated.
In the meantime, chain data shows that the daily active address in Shiba Inu increased by 54% over the last seven days, a sign of growing adoption.
Shiba Inu price technical analysis
The daily chart shows that SHIB price made a bullish breakout last week but found strong resistance at $0.000025.
This is a crucial level since it is also the January 4th swing high.
On the positive side, SHIB remained above the 200-day moving average. He also performed a breakout and retest pattern, in which an asset breaks above a resistance point, then retests it and resumes the trend.
In this case, Shiba Inu has moved above the top of the falling wedge pattern and has now retested it. This could be a sign of a potential rebound. Further gains will be confirmed if the coin rises above the key resistance at $0.000025.
Such a move would hint at more gains, potentially to $0.000033, its December high.
Shiba Inu, created in August 2020 by the pseudonym “Ryoshi”, has evolved from a meme coin to a utility-driven ecosystem.
It includes ShibaSwap, a decentralized exchange for trading, staking and earning rewards, and Shibarium, a layer 2 blockchain offering faster transactions and lower gas fees.
The ecosystem also includes LEASH and BONE tokens for governance and staking, and it is growing SHIB: the metaversewhere users can purchase virtual land.