The price of Shiba Inu bounced back over the weekend as crypto traders' attention may have shifted to Official Trump.
Shiba Inu (SHIB) token went back to $0.00002099, down 9%.
His descent mirrored that of other popular meme coins such as Pudgy Penguins, Dogwifhat, Popcat, and Peanut the Squirrel.
One possible reason for this price action is that some traders switched from Shiba Inu to Official Trump (TRUMP), which has a fully diluted valuation of over $71 billion.
Shiba Inu has several cats that could push its price higher. First, Bitcoin (BTC) continued to rise and moved closer to the all-time high of $108,200. A move above the all-time high is likely to attract crypto investors to other altcoins, including Shiba Inu. See below.
Second, the everyday Shiba Inu burn rate continue to rise on Sunday. according to Sheriff's Burnthe burn rate jumped 950% to over 30 million SHIB tokens, bringing the total number of Shiba Inu burned to 410 billion.
Burning is a process that reduces the number of tokens in circulation by sending them to an inaccessible wallet.
Third, Shibarium, the Shiba Inu layer-2 network, crossed a major milestone last week as its transaction volume jumped above 800 million on Friday. according to Sibarium scanthe network's transactions have now increased to 815 million as the number of addresses has risen to 2.1 million.
The success of Shibarium has a small effect on the Shiba Inu price as some of the BONE fees are converted to SHIB and burned.
At the same time, chain data shows that the daily active address in Shiba Inu has increased by 54% in the last seven days, an indication of the growth of adoption.
Shiba Inu price technical analysis
The daily chart shows that SHIB price made a breakout last week but found strong resistance at $0.000025.
That was a critical level because it also peaked on January 4th.
On the positive side, SHIB has remained above the 200-day moving average. It also has a breakout and reconfirmation pattern, where an asset moves above a resistance point, then reconfirms it and resumes the move.
In this case, Shiba Inu moved above the upper side of the falling pattern and is now reconfirmed. That could be a sign of a possible relapse. More gains will be confirmed if the coin moves above the key resistance at $0.000025.
Such a move will signal further gains, possibly to $0.000033, the December high.
Shiba Inu, created in August 2020 with the nickname “Ryoshi,” has evolved from a meme base into a resource-oriented ecosystem.
It includes ShibaSwap, a decentralized exchange for trading, staking, and reward earning, and Shibarium, a Layer 2 blockchain offering faster transactions and lower gas fees.
The ecosystem also features LEASH and BONE features for management and control, and is developing SHIB: The Metaversewhere users can buy virtual land.
