Shiba Inu is back with new vigor against the backdrop of the market’s subdued liquidity and tranquility. The meme coin illuminated the weekend scene with a positive candle, rekindling hope among traders and investors. The uptick is of particular significance given that it transpired during a period of broader market stagnation.
What’s underpinning this newfound optimism?
Recently, SHIB faced multiple support levels, constructing a robust platform for potential upward momentum. The conspicuous absence of strong resistance levels on the horizon contributes to the prevailing bullish sentiment. Traders are therefore closely following this meme coin, as its recent conduct implies a potential preparation for a more substantial market shift.
On August 16, Shiba Inu rolled out its layer-2 scaling protocol, the Shibarium mainnet after months of testing that attracted record numbers of transactions. However, the launch was plagued with technical woes, prompting the team to halt it temporarily. The layer-2 network fragilities probably spooked SHIB holders into refraining from performing transactional activities as well as moving their tokens into self-custody since the initial Shibarium launch.
Shiba Inu’s Price Trend Depend On User’s Re-engagement
Between August 17 and August 26, holders of Shiba Inu tokens have withdrawn 1.8 trillion SHIB tokens, equating to a value of $14.5 million at the current market price of $0.000008. This withdrawal amounts to over 10% of the average trading volume Shiba Inu has experienced in the past week.
This withdrawal trend indicates the potential for a supply shortage, particularly if the concerns surrounding Shibarium ease and market demand see a surge following its successful relaunch.
The provided chart illustrates a decline in the number of daily Active Addresses on the Shiba Inu network since August 16. By August 26, this count had decreased to 3,647, reflecting a substantial 56% drop from the 8,214 Active Addresses recorded on August 16.
In summary, the future price movement of SHIB tokens will significantly depend on users’ re-engagement with the network in the upcoming days. The connection between the challenges faced by Shibarium and the decrease in market demand highlights the potential transformative impact that a successful Shibarium relaunch could have on the SHIB token’s value.