The current Shiba Inu price action may leave some investors wanting, especially since the cryptocurrency has now extended its 30-day losing streak by more than 30%. However, the latest on-chain data and technical analysis indicate that patience will soon pay off. More specifically, the current price drop has pushed the Shiba Inu into the accumulation zone, which could signal the start of another bull wave. At the same time, the simultaneous 493% raise in transaction fees on the Shibarium network suggests that this may be the perfect time for investors to raise their trading volume.
Shiba Inu price drops to 100-day low as bears take over
The last few weeks have been a real bloodbath for Shiba Inu (SHIB) owners. After bouncing off the $0.000022 support and briefly rising to hit $0.00002756 in the last week of May, the popular meme coin dropped over 30% to briefly dip below $0.000017 this week. This brutal sell-off pushed SHIB to a 100-day low, wiping out billions in market value.
Experts blame investors for withdrawing from meme coins this fall. The Shiba Inu has not been left out as a meme coin he was also a witness main transfers to cryptocurrency exchanges.
On the pricing side, the decline in the SHIB index means that investors now have the opportunity to buy at currently low prices, which could herald a reversal in the bearish trend. You would think that given the recent decline in the price of SHIB, activity on the network would ponderous down. Surprisingly, this is not the case at all.
Last data from Shibariumscan indicates that transaction fees on Shibarium’s Layer 2 network skyrocketed by 493% last week. The huge raise in transaction fees was due to increased online transaction activity. It is worth noting that the number of recent transactions increased from 5,865 at the beginning of the week to 16,337 at the end of the week, an raise of 178%.
Although trading fees on Shibarium are paid in BONE tokens, a portion of the tokens are converted to SHIB and then burned. This in turn reduces the quantity SHIB tokens in circulation.
What’s next for SHIB?
At the time of writing, SHIB is trading at $0.00001702 and appears to be in a consolidation phase. Experts are currently 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 memes in the altcoin market may finally be coming to an end.
On the other hand, analyst Javon Marks believes that Shiba Inu still has room to break to the upside, and the recent pullback could also contribute to that. Marx argues that the Shiba Inu is still growing by 100% since the last wave of growth and has the potential to grow by another 294%. The price targets are $0.000081 and $0.0001553.
Featured image created with Dall.E, chart from Tradingview.com
