Shiba Inu price retreated during the weekend as crypto traders’ attention possibly shifted to Official Trump.
Shiba Inu (SHIB) token retreated to $0.00002099, down by 9%.
Its retreat mirrored that of other popular meme coins like Pudgy Penguins, Dogwifhat, Popcat, and Peanut the Squirrel.
One potential reason for this price action is that some traders rotated from Shiba Inu to Official Trump (TRUMP), which has a fully diluted valuation of over $71 billion.
Shiba Inu has several catalysts that may push its price higher. First, Bitcoin (BTC) continued rising and moved closer to the all-time high of $108,200. A move above its all-time high will likely draw crypto investors to other altcoins, including Shiba Inu. See below.
Second, the daily Shiba Inu burn rate continued rising on Sunday. According to Shibburn, the burn rate jumped by 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, Shiba Inu’s layer-2 network, crossed a key milestone last week as its transaction count jumped above 800 million on Friday. According to Shibariumscan, the network’s transactions have now risen to 815 million as the number of addresses rose to 2.1 million.
Shibarium’s success has a mild impact on Shiba Inu price because some of the BONE fees are converted into SHIB and incinerated.
Meanwhile, on-chain data shows that the daily active address in Shiba Inu has grown by 54% in the last seven days, a sign of growing adoption.
Shiba Inu price technical analysis
The daily chart shows that the SHIB price made a bullish breakout last week but found a strong resistance at $0.000025.
That was a crucial level since it was also the highest swing on Jan. 4.
On the positive side, SHIB has remained above the 200-day moving average. It has also made a break and retest pattern, where an asset moves above a resistance point, then retests it and resumes the trend.
In this case, Shiba Inu moved above the upper side of the falling wedge pattern and has now retested it. That could be a sign of a potential rebound. More gains will be confirmed if the coin moves above the key resistance at $0.000025.
Such a move will point to more gains, potentially to $0.000033, its December high.
Shiba Inu, created in August 2020 by the pseudonymous “Ryoshi,” has evolved from a meme coin into a utility-focused ecosystem.
It includes ShibaSwap, a decentralized exchange for trading, staking, and earning rewards, and Shibarium, a Layer 2 blockchain offering faster transactions and lower gas fees.
The ecosystem also features LEASH and BONE tokens for governance and staking, and it is developing SHIB: The Metaverse, where users can buy virtual land.
