Shiba Inu price falls 33% from December highs, but signals of a potential rebound emerge
Shiba InuSHIB), the second-largest meme coin, hit a high of $0.00002215, up 12% from its lowest level this week. It lags behind other popular meme coins like Fartcoin, ai16z, and Dogwifhat.
A likely reason for SHIB’s underperformance is that Shibarium, its Layer 2 network, is not doing well. As the number of transactions approaches 800 million, total transaction fees have continued to decline. Tuesday, the network collected 640 BONE in fees, worth less than $300
Shibarium’s performance has impacted Shiba Inu because a portion of the transaction fees are used to burn SHIB tokens. According to Shibburnthe burn rate has remained under pressure in recent weeks.
Basically, the coin could make a strong comeback as cryptocurrencies recover. Bitcoin (BTC) nears key resistance point at $100,000 after encouragement consumer inflation data. It could also succeed well before Donald Trump’s inauguration and the start of his term. The Paul Atkins era to the Securities and Exchange Commission.
Shiba Inu Coin Price Analysis
The daily chart shows that SHIB price formed a hammer or morning star candlestick as cryptocurrencies plunged on Monday. This pattern, featuring a long lower shadow and a small body, is often considered a reversal sign.
Shiba Inu has also formed a falling wedge chart pattern, consisting of two descending and converging trend lines. This pattern is generally considered a bullish reversal signal, with breakouts often occurring when the lines converge.
SHIB also formed a bullish divergence as the Relative Strength Index formed an ascending channel. Therefore, the coin could rebound and reach last year’s high of $0.000033, which is around 50% above the current level. A fall below key support at $0.00001853, its December low, would invalidate the bullish view.