As a seasoned researcher with extensive experience in the crypto market, I have closely monitored the recent developments surrounding Shiba Inu (SHIB). Over the past week, SHIB has experienced a significant downturn, with its price dropping approximately 13% according to CoinGecko’s data. This trend might not be over yet, as some analysts predict further declines in the short term.
TL;DR
- Shiba Inu (SHIB) has dropped 13% in the past week, with analysts suggesting it could fall further soon but rally in the long term.
The poor performance of the L2 blockchain solution Shibarium, with declining transactions and accounts, may negatively affect SHIB’s price.
Where’s SHIB Headed Next?
The well-known meme currency, Shiba Inu (SHIB), has experienced a weak performance over the past week. Based on CoinGecko’s figures, its price has dropped by around 13%. Some market insiders predict that this downward trend could become more pronounced in the near future.
One user of X stated that SHIB‘s value hovers in a “stable zone” when it trades between $0.0000185 and $0.0000164. Nevertheless, the analyst predicted it might decrease to $0.000015 if it fails to hold onto the significant resistance level at $0.000017. Keep in mind that the price had momentarily dipped beneath this level a few hours prior.
The trader pointed out that it’s challenging to determine a clear course of action for the long and intermediate periods. However, focusing on the third graph, there seems to be a potential formation of a bearish triangle.
In contrast, the analyst anticipates that SHIB will surge in the future, however, it’s presently in a rather stagnant phase. As a result, trading this coin is considered challenging at the moment.
Based on my extensive experience in the financial markets, I strongly advise you to exercise patience and wait for lower levels before entering into a long position. I’ve learned through years of observation and trading that sometimes it’s wiser to step back and assess the situation rather than making hasty decisions. The markets can be unpredictable at times, and taking a moment to gather more information before making a move can save you from potential losses. Trust me, this approach has served me well throughout my career.
Other analysts have taken a more optimistic stance, predicting significant price increases for SHIB. In April, the analyst Rekt Capital proposed that if SHIB surpassed the resistance level of $0.000033285, its value could experience triple-digit growth. It’s important to mention that the last time SHIB reached this price point was in March of this year.
Shibarium’s Downfall
“A potential reason why SHIB‘s price may struggle in the near term is the underperformance of its layer-2 blockchain solution, Shibarium.”
On July 23rd, the protocol handled just 2,310 daily transactions, a significant decrease of 83% compared to the end of June. Additionally, the number of active accounts, new contracts, and newly verified contracts has been declining.
Approximately a year ago, the L2 scaling solution for Ethereum, known as The L2 Scaling Solution, was launched. Designed to manage higher transaction volumes, alleviate network congestion, and enhance overall performance, this innovation has sparked optimism among industry players. They speculate that its advancement could potentially boost Shiba Inu’s (SHIB) price.
In the past few months, Shibarium underwent significant enhancements. Notably, it introduced a new user interface (UI) version. This upgrade facilitates compatibility with widely-used self-custody wallets such as MetaMask, Coinbase Wallet, and Trust Wallet.
For more updates on the ecosystem, make sure to check out our Shibarium news.
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2024-07-24 11:27