TLDR
- Shiba Inu (SHIB) recovered with a 20% price bounce in the past 24 hours after an 18% drop from its recent $0.0000152 resistance level
- Daily chart shows bullish structure while 4-hour chart indicates bearish trends, with higher timeframe suggesting potential for long positions
- Shibarium, SHIB’s Layer-2 blockchain, reached 1 billion transactions in less than two years since its August 2023 launch
- Shibarium processes approximately 4 million transactions daily and achieved the 1 billion milestone significantly faster than Bitcoin (15 years)
- The network has over 193.93 million blockchain addresses and 10.23 million mined blocks with an average block time of 5.0 seconds
Shiba Inu has rebounded nearly 20% in the past 24 hours following a period of price decline. The popular meme cryptocurrency showed mixed signals across different timeframes but appears to be regaining momentum as its Layer-2 solution, Shibarium, reached a major milestone.
The cryptocurrency recently retreated from its local resistance level of $0.0000152 after a rally last week. This 18% price drop occurred alongside broader market movements.
Bitcoin’s bearish trend over the past week contributed to market-wide pressure. BTC fell from $87,600 to $82,400, a 5.8% drop, which triggered sell-offs across altcoins including SHIB.
However, analysis of Shiba Inu’s daily chart reveals an underlying bullish structure. The move beyond $0.0000138 shifted the market structure in a positive direction.
For the structure to turn bearish again, prices would need to breach the $0.0000115 level, which sits approximately 9.6% below current market prices.
Trading Indicators Show Strength
On-Balance Volume (OBV) has been trending upward for three weeks, indicating increased buying pressure for the meme coin. The Relative Strength Index (RSI) is also recovering and appears poised to move beyond the neutral 50 mark, which would reflect renewed bullish momentum.
Looking at shorter timeframes presents a different picture. The 4-hour chart highlights steep losses since last Wednesday, with prices failing to defend short-term support levels at $0.000013 and $0.0000125 during the decline.
The recent 20% price bounce has brought Shiba Inu back above the $0.0000125 level. This creates a situation where the 4-hour chart shows a bearish structure while the daily chart maintains a bullish outlook.
Since higher timeframes generally carry more weight for analysis, swing traders and investors may have reason to consider long positions in the cryptocurrency.
Shibarium Reaches Historic Milestone
While price action has been mixed, Shiba Inu’s Layer-2 blockchain solution, Shibarium, has achieved a remarkable feat. The network recently processed its 1 billionth transaction since launching in August 2023.
This milestone was reached in less than two years of operation, with the network currently processing approximately 4 million transactions daily.
Market observers point out that what makes this achievement stand out is the speed at which Shibarium reached the billion-transaction mark. For comparison, Bitcoin took 15 years to process 1 billion transactions, while Shibarium accomplished this in under two years.
The Layer-2 blockchain now boasts over 193.93 million addresses that have interacted with the network since its 2023 launch. According to Shibariumscan data, the network has mined 10.23 million blocks with an average block time of 5.0 seconds.
Shibarium did face initial challenges, going offline for two weeks shortly after launch due to technical issues. However, it returned to operation in late August 2023 and has been running continuously since then.
The current market capitalization of SHIB stands at approximately $7.5 billion, reflecting its position as one of the leading meme cryptocurrencies by value.
With a bullish daily chart structure and the impressive growth of its Layer-2 solution, Shiba Inu appears positioned for potential upside despite recent price volatility and mixed short-term signals.
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