Shiba Inu’s current price action may be leaving some investors unhappy, especially since the crypto has already extended its 30-day losses by more than 30%. However, recent on-chain data and technical analysis indicate that patience is about to bear fruit. To be more specific, the current price drop has caused Shiba Inu to enter the accumulation zone, which could signal the start of the next bull run. At the same time, a simultaneous 493% increase in transaction fees within the Shibarium network suggests this could be the ideal time for investors to prepare.
Shiba Inu Price Hits 100-Day Low as Bears Take Control
The last few weeks have been a bloodbath for Shiba Inu (SHIB) holders. After rebounding at support at $0.000022 and briefly rising to reach $0.00002756 in the last week of May, the popular meme coin plunged more than 30%, briefly falling below $0.000017 this week. This brutal sell-off dragged SHIB to its lowest level in the last 100 days, wiping billions from its market capitalization.
Related Reading
Experts attributed this drop to investors withdrawing from meme coins. Shiba Inu was not left out, like the meme coin also testified large transfers to crypto exchanges.
On the price side, SHIB’s decline means traders now have the opportunity to buy at current low prices, which could herald the reversal of the downtrend. You would think that with the price of SHIB taking a dip lately, activity on the network would be slowing down. Surprisingly, this is not the case.
Recent Shibariumscan data indicates that transaction fees on the Shibarium layer 2 network soared by 493% last week. The huge increase in transaction fees came from increased transaction activity on the network. Notably, the number of new transactions went from 5,865 at the start 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 appears to be consolidating. Experts are now divided into different schools of thought on the future of meme coins, including SHIB. According to Ki Young Ju, CEO of CryptoQuant, the current downtrend suggests that the dominance of meme coins in the altcoin market may finally end.
Related Reading
On the other hand, analyst Javon Marks believes that Shiba Inu still has room to rise, and the recent pullback could also be a contributing factor. Brands claims that Shiba Inu is still up 100% since its last bull run and has the potential to rise another 294%. The target prices are at $0.000081 and $0.0001553.
Featured image created with Dall.E, chart from Tradingview.com