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In the last 24 hours, the Shiba Inu price has plummeted 1.5%, pulled down by a cryptocurrency market that has responded unfavorably to the likelihood of another Fed rate rise.
At $0.00001092, it has been down 9% in the last week and 24% in the last 30 days, but it is still up 35% since the beginning of the year.
Despite today’s drop, there is now a very good likelihood that SHIB will rise later this week.
This is owing to the revelation that Shibarium, the layer-two network for Shiba Inu, would start its public beta this week, ushering in a new age in which the meme currency will provide some true benefit.
SHIB’s signs continue to hint to the meme token nearing a bottom, after which it may experience a big bounce.
The relative strength index (purple) of the token is close at 30, at which time it will ‘officially’ become oversold, indicating an oncoming rise.
Similarly, SHIB’s 30-day moving average (red) has begun to decrease sharply and is likely a week or two away from going below its 200-day average (blue).
At this moment, traders may anticipate that SHIB will continue to rise again, which will be aided by the aforementioned Shibarium news.
Shibarium’s release will make SHIB transactions faster and cheaper, as well as the small number of programs, such as ShibaSwap, that populate the Shiba Inu ecosystem.
In turn, the appeal of this ecosystem to DeFi and other sectors of the crypto economy will grow, bringing more users and adopters to SHIB.
As a result, demand for SHIB will rise, and the introduction of Shibarium will result in an increase in SHIB burning due to the elimination of transaction fees.
This comes at an opportune time for SHIB, since the meme coin has dropped a little harder in recent days than other prominent tokens.
In recent weeks, for example, a large number of whales have sold their SHIB holdings.
On February 8, the top 500 ERC-20 addresses had $694 million in SHIB, which has since declined by 12.5% to $606 million.
Notwithstanding this decrease, whale SHIB holdings are still significantly larger than they were in the middle of January, when they stood at barely $84.5 million.
This implies that many whales purchased SHIB at relatively high prices, which should prevent them from selling at a loss, implying that the currency may hold to its $0.0000105 support level.
In the long run, the eventual introduction of SHIB: The Metaverse will boost market confidence in SHIB.
This metaverse is a Shiba Inu-themed virtual environment in which players may use or purchase 100,595 pieces of land organized into four districts: the Growth District, the Defense District, the Technology District, and the Currency District.
While specifics about SHIB: The Metaverse are currently few, there is little question that its release will enhance demand for SHIB, which will fulfill utility functions on the platform.
As a result, it’s realistic to expect SHIB to fare well in the long run.
Shibarium will not only have a pump when it releases this week but it is also expected to climb consistently throughout the year.
According to Changelly statistics, the average year-high estimate is $0.0000162484, signifying a 48% increase over the current price.
SHIB holders, on the other hand, anticipate even larger increases sooner or later, with some aiming for as high as $0.1 or even $1.
