Shibarium was relaunched a few days ago, and the layer 2 network has achieved remarkable triumph recently. The Shiba Inu community is creating bullish vibes as Shibarium aims to decrease transaction fees and gas costs. This reduction could potentially lure investors into pouring substantial investments into this meme coin. Nevertheless, current on-chain metrics show a blend of emotions as Shiba Inu’s price movements form a triangular pattern.
SHIB’s Average Balance Declines Amid Low Inflow Transactions
Since Shibarium’s mainnet was rebooted, there has been a consistent uptick in the total value locked (TVL), which recently broke the $1.4 million mark, signaling high enthusiasm for the revamped chain. However, this positive momentum hasn’t translated into a bullish trajectory for SHIB’s market price.
Data from IntoTheBlock shows that the average balance in SHIB-holding wallets has been on a downtrend, moving from $8,341 to $6,318 over the past fortnight, suggesting declining investor confidence despite a bullish ecosystem.
This downward trend in the average wallet balance could signal a bearish outlook for SHIB’s future pricing, indicating that investors may be hesitant to interact with the token due to its failure to align with their bullish expectations.
Interestingly, the number of exchange deposit addresses has also been on a consistent decline and recently reached May 2021 level. According to data from CryptoQuant, the metric currently stands at 202, marking a significant drop over the last few months.
The reduction in the number of addresses depositing SHIB tokens into exchanges could actually be a bullish indicator of the token’s price. This trend suggests that holders are less inclined to liquidate their SHIB assets, potentially setting the price for an upward movement as selling pressure fades.
What’s Next For SHIB price?
Shiba Inu is currently hovering in a triangle pattern as there’s a strong battle between the bulls and bears to make a clear move. As of writing, SHIB’s price trades at $0.00000812, declining over 0.25% in the last 24 hours.
Bullish momentum is attempting to lift the SHIB price above the $0.0000084 mark, but the gains were not sustained, leaving the price under the resistance line. This indicates that the price is still within bearish territory.
The next key support level is at the uptrend line of the pattern. A strong rebound from this level would imply that traders are buying on minor declines, increasing the likelihood of a rally surpassing the EMA100 trend line. If this happens, the SHIB price might rise above the triangle pattern and aim for a trade above $0.00001.
Conversely, if the price falls below the support line, it would suggest that bearish forces are preparing for a comeback. Under such circumstances, the price might slide towards the crucial $0.0000073 support level.