The Shiba Inu price rally stalled this week as Bitcoin, Ethereum, and other altcoins took a breather. On Thursday, the SHIB token was trading at $0.00001575, a few points below this month’s high of $0.00001758. This article explains why the Shiba Inu Coin price may surge by 40% soon.
Shibarium is Coming Back
Shiba Inu has always been on a journey to shed its meme coin characteristics. This explains why the developers have launched numerous initiatives over the years. Shibarium, a layer-2 network, was one of these initiatives.
The developers envision Shibarium as a viable alternative to other popular layer-2 networks like Base, Arbitrum, and Polygon. However, data shows that it is still a small player in the L2 industry.
Per DeFi Llama, it has just $3.7 million in total value locked (TVL). These assets are mostly in ShibaSwap, the team’s decentralized exchange network. Other dApps on the ecosystem are K9 Financial DAO, WoofSwap, ChewySwap, and DogSwap.
While Shibarium’s network is small, it is showing some progress as the TVL has jumped from $2.27 million in April to $3.7 million today. ShibaSwap’s TVL has jumped by 40% in the last 30 days, while K9 Finance DAO, a liquid staking network, has gained over 150%. Other top players have gained by over 30%, as shown below.
More data shows that the network growth is continuing. Total transactions have jumped to over 1.16 billion, while the cumulative addresses has soared to almost 210 million. This makes it one of the most widely held layer-2 networks.
Shibarium handled over 3.42 million transactions in the past 24 hours, while BONE transfers surged to over 3.08 million. This growth has pushed the cumulative gas usage to over 45 trillion BONE.
Shiba Inu Price Analysis
In the last article on SHIB, we noted that it had formed a highly bullish harmonic chart pattern on the weekly chart. That article explained why the coin was on the verge of a big breakout to its highest point in 2024.
The short-term Shiba Inu price outlook is also bullish. The daily chart shows that it recently made a bullish breakout above the key resistance level at $0.00001522, the neckline of the inverse head and shoulders pattern.
It has now retested that price level, which coincides with the 78.6% Fibonacci Retracement level. A break-and-retest is a highly bullish continuation sign.
Shiba Inu price has also moved above the 50-day moving average. Therefore, the most likely scenario is that it eventually jumps to the 50% Fibonacci Retracement level at $0.00002215, up 40% above the current level.
READ MORE: With just $130 million in SHIB coins, will Shiba Inu’s price rise or crash?
