The second-largest meme coin, it’s trading at $0.00002215, up 12% from its low this week. It’s lagging behind other popular meme coins like Fartcoin, ai16z, and Dogwifhat.
The reason for SHIB’s poor performance is likely that the Shibarium network, a layer 2 network, is not performing well. As the number of transactions approaches 800 million, the total transaction fees continue to decline. On Tuesday, the network collected 640 BONE in fees, worth less than $300.
Shibarium’s performance has impacted Shiba Inu because a portion of the transaction fees are used to burn Shibarium tokens. According to Shibarium, the burn rate has been under pressure in recent weeks.
Fundamentally, the currency could see a strong comeback as cryptocurrency prices rise.Bitcoin
The daily chart shows that SHIB price formed a hammer or morning star candlestick as the cryptocurrency fell on Monday. This pattern, which features a long lower shadow and a small body, is often seen as a reversal sign.
Shiba Inu also formed a falling wedge chart pattern, which consists of two converging downtrend lines. This pattern is generally considered a bullish reversal signal, and breakouts often occur as the lines converge.
SHIB has also formed a bullish divergence as the RSI has formed an ascending channel. Therefore, the coin could rebound and reach last year’s high of $0.000033, which is about 50% higher than the current level. A drop below the major support at $0.00001853, the December low, would invalidate the bullish view.