The Shiba Inu price has recently shown signs of potential recovery, thanks to the growing Shibarium ecosystem. Following a period of capitulation, where traders began to let go of their holdings, curiosity grows about whether Shiba Inu can rise as much as 50%.
Currently, Shiba Inu is trading at $0.00002225, a significant drop from its monthly high of $0.000033. However, the recent success of Shibarium, which is the layer 2 network launched earlier this year, may act as a catalyst for a price rebound. The Shibarium Scan reports that the network has exceeded 2.02 million addresses and has completed more than 692 million transactions. This surge in activity suggests strong network adoption, providing a supportive backdrop for Shiba Inu’s price.
One of the key benefits of Shibarium’s growth for Shiba Inu is its contribution to its burn rate through transaction fees. According to ShibBurn, this burn rate has seen an uptick since Shibarium’s introduction. A higher burn rate generally puts upward pressure on the asset’s price, as it reduces the circulating supply.
Several indicators point to a potential rebound in SHIB. One noteworthy factor is the declining open interest in the futures market, which has hit a monthly low. Historically, when open interest decreases, a price rally is often on the horizon. For instance, SHIB experienced a 75% increase after its open interest fell to $38 million on November 6.
Another promising sign is related to the realized profit/loss indicator. This data suggests that we are witnessing a significant capitulation phase, with many investors selling at a loss. While this may seem troubling at first glance, such capitulation can often lead to a solid price recovery as the market clears out weaker hands.
Looking at the price chart, Shiba Inu does show a hammer candlestick pattern—characterized by a small body and a long lower shadow. This is typically seen as a reversal signal. Moreover, SHIB has maintained key support along an ascending trendline since August. If Shiba Inu manages to surpass the 50-day moving average, a bullish breakout could materialize, pushing the price up to around $0.00003380, which would be a significant 50% increase from its current level.
If the price drops below the ascending trendline at $0.000019, it would likely negate this optimistic outlook and suggest further declines.
In responding to key questions about Shibarium and Shiba Inu’s price prospects:
- Why is Shibarium important for the Shiba Inu price? Shibarium’s fees enrich the burn volume, which is believed to lead to a higher price over time.
- Why is the falling SHIB futures open interest considered a good thing? Generally, a drop in open interest suggests that sentiment is souring, leading to potential price gains when speculation declines.
- How high can SHIB rise? A rebound could see the price reach as high as $0.000033, which is its peak for this year, paving the way for even more substantial gains.
In this competitive market, keeping an eye on such indicators can be the key to unlocking Shiba Inu’s future. Excitement builds as traders speculate about the potential for SHIB to bounce back from recent lows amidst Shibarium’s growth.
