Shiba Inu saw a decline over the weekend, dropping by 9% to $0.00002099, as traders seemingly shifted their attention to Official Trump. This price retreat mirrored similar movements in other meme coins like Pudgy Penguins, Dogwifhat, Popcat, and Peanut the Squirrel.
A possible reason for this downturn is the rotation of capital from Shiba Inu into Official Trump, which currently holds a fully diluted market valuation exceeding $71 billion. Despite the drop, Shiba Inu has several potential catalysts that could drive its price upward in the near future.
First, Bitcoin’s continued ascent toward its all-time high of $108,200 could inspire crypto investors to explore altcoins, including Shiba Inu. Second, the Shiba Inu burn rate showed significant growth, jumping 950% to over 30 million tokens burned in a single day. This brings the total number of Shiba Inu tokens burned to a staggering 410 billion. Burning tokens reduces the circulating supply, which can help drive up price.
Third, Shibarium, the layer-2 network supporting Shiba Inu, reached a major milestone with its transaction count surpassing 800 million, growing to 815 million transactions and 2.1 million addresses. Shibarium’s success also indirectly benefits Shiba Inu, as some transaction fees are converted into SHIB tokens and burned.
Additionally, on-chain data revealed a 54% increase in daily active Shiba Inu addresses over the past week, signaling growing adoption.
Technical Analysis for Shiba Inu Price
Shiba Inu’s daily chart shows a bullish breakout last week, but it encountered resistance at the key level of $0.000025, which also marked its highest swing on Jan. 4. On a positive note, SHIB has remained above its 200-day moving average and demonstrated a “break and retest” pattern, which suggests a potential rebound.
If Shiba Inu breaks above the $0.000025 resistance, the next target could be $0.000033, its December high. This potential upward movement would further reinforce its price rally.
Launched in August 2020 by the anonymous “Ryoshi,” Shiba Inu has evolved from a meme coin into a utility-driven ecosystem, which includes ShibaSwap for decentralized trading and staking, Shibarium for faster transactions, and plans for SHIB: The Metaverse, a virtual land platform.
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