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- Shiba Inu rose 20% from yearly lows amid Shibarium revival.
- Exchange outflows and whale accumulation support bullish potential.
- Technical patterns suggest SHIB could test $0.0000116 resistance.
Shiba Inu (SHIB) has quietly staged a recovery after weeks of heavy selling, attracting attention from both traders and long-term holders. Trading at $0.0000098, the token has climbed 20% from its lowest level this year, signaling renewed investor interest. Recent developments within the Shibarium ecosystem and shifts in exchange balances suggest that SHIB could be setting the stage for a meaningful rebound.
Shibarium’s Comeback Fuels Optimism
The Shibarium layer-2 network has begun regaining traction after a major exploit temporarily froze ShibaSwap two months ago. According to DeFi Llama, total value locked (TVL) in Shibarium surged 137% over the past week, reaching $1.86 million—the highest since mid-September. ShibaSwap led this growth, climbing 137% to $1.15 million.
Other ecosystem projects also posted strong gains: WoofSwap rose 132% to $442k, ChewySwap jumped 140%, and DogSwap more than doubled. Shibarium addresses now exceed 272 million, with transactions gradually increasing. The network’s mechanism of converting fees into BONE and burning them helps reduce circulating SHIB, potentially creating scarcity and supporting future price growth.
Exchange Outflows and Whale Accumulation
Shiba Inu’s upward potential is also supported by declining exchange balances. Nansen data shows SHIB on exchanges dropped from 297 trillion in August to 284 trillion, signaling stronger holding behavior. Whales and smart money are taking notice: smart money holdings rose 8.5% to 43 billion SHIB over 90 days, while whale positions surged 120% to 105 billion tokens. Burn rates have also increased recently, adding another bullish factor.
Also Read: Shiba Inu (SHIB) Rises 1.8% as Key Levels Hold
Technical Outlook Suggests Short-Term Upside
Technically, SHIB remains in a long-term downtrend, but short-term charts reveal promising patterns. An inverse head-and-shoulders formation with a head at $0.00000835 and a small bullish flag indicate potential upside. A climb above the 50-period EMA could see SHIB test resistance near $0.0000116, aligned with the 50% Fibonacci retracement.
Traders should note that a drop below $0.0000094 would invalidate this bullish setup. For now, the combination of Shibarium’s revival, exchange outflows, whale accumulation, and rising burn rates suggests that Shiba Inu is positioned for a potential rebound.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
