Over the week, the cryptocurrency market experienced a decline, resulting in a loss of approximately $162 billion, largely influenced by developments related to Tether and ongoing geopolitical tensions.
Amidst this backdrop, the Shiba Inu token suffered even more severe losses, and exhibited notable price fluctuations, dropping from a peak of $0.00001934 to a trough of $0.00001583. Initially, this volatility gave an impression of undermining previous bullish forecasts; however, the reality is much more nuanced than it appears.
Is Shiba Inu (SHIB) on the verge of a resurgence?
For a time, it seemed that the aspirations of meme cryptocurrency enthusiasts, especially those focused on the potential formation of a golden cross, were fading. However, SHIB surprised many by making an unanticipated upward movement, breaking through the significant threshold of $0.0000163, corresponding to the 50-day moving average.
This sudden rise was not just a fleeting moment; the price trajectory later returned to this pivotal level, indicating a retest of the moving average. More encouragingly, this movement revealed robust backing from bullish investors, who displayed tangible support at this price point, suggesting that the market sentiment might be shifting in favor of SHIB’s future performance.
As previously mentioned, the 50-day moving average is one of the two critical elements that contribute to the formation of a golden cross, functioning as the curve that ascends and intersects with the other moving average from below.
Bulls Hold Strong at Critical Price Levels
In this scenario, despite the significant and distressing double-digit decline in the value of the Shiba Inu token, bullish investors successfully maintained the price within the range defined by the two moving averages. This ability to keep the token anchored in this area demonstrates a level of resilience and support from buyers, indicating a potential foundation for future price recovery.
This development further reinforces the earlier expectation that SHIB could be on the brink of achieving a golden cross, suggesting a positive outlook for the cryptocurrency. As a result, it inspires optimism among Shiba Inu supporters, who remain hopeful about the token’s potential for future growth and upward momentum.
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Shibarium Activities Sees Significant Surge
Shibarium, the layer-2 network for Shiba Inu, recently experienced substantial growth in activity and transaction volumes climbing sharply. By October 23, Shibarium’s transactions had spiked to 3.24 million, rising further to 4.76 million on October 26. This level of consistent usage shows a strong adoption trend, with users actively engaging in Shibarium’s applications and transactions.
Shiba Inu’s ecosystem has also benefited from this activity boost, marked by a significant increase in the SHIB token burn rate. Over 279 million SHIB tokens were burned in just 24 hours, a development that decreased the token’s supply and could support its value.
Additionally, Shibarium’s transaction fees—paid in BONE, the native ecosystem token—have escalated as network usage grows, further enhancing Shiba Inu’s presence in the crypto market. Large-scale whale transactions, involving billions of SHIB tokens, also reflect rising interest from major holders, likely bolstering the project’s market profile and investor interest.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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