Is Shiba Inu teetering on the edge of crypto’s top 20 list?
Shiba Inu is down by more than 4% in the last seven days, but a few market indicators look bullish on the meme coin.
- Shibarium’s total transactions and wallets exceeded 1.3 million and 1.1 million, respectively.
- Investors bought SHIB while its price plummeted, but the supply held by top addresses also dropped.
Despite robust development going around Shiba Inu’s [SHIB] Shibarium, its native token failed to meet investors’ expectations. Since the launch of the Layer-2, SHIB’s market capitalization reduced substantially, causing the meme coin to bleed.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
If the declining trend continues, there are chances of SHIB slipping off the list of the top 20 cryptos by market cap.
Shibarium’s adoption is on the rise
Shibarium remains a hot topic of discussion as its adoption has increased over the last few weeks. Notably, Shibarium explorer Shibariumscan.io revealed that the total number of wallets exceeded the 1.1 million mark.
Moreover, its usage was also on the rise as its total transactions reached 1.38 million. At the time of writing, Shibarium had processed more than 520,000 blocks, with an average block time of five seconds.
Despite Shibarium’s growth, SHIB did not react positively. In fact, LUCIE, an official X (formerly Twitter) handle that posts updates related to the Shiba Inu ecosystem, also highlighted that most investors were bearing losses.
We're all feeling exhausted, and we're all experiencing losses—it's tough.
But we're putting in our best effort to add value to our ecosystem.
Shibarium is decentralized, and all projects have their time to launch without us killing it with Shiba Ecosystem Dapps. They are… pic.twitter.com/Ow9wATIe3n
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) September 7, 2023
According to CoinMarketCap, SHIB was down by more than 4.5% in the last seven days. At press time, it was trading at $0.000007627 with a market cap of over $4.5 billion, making it the 16th largest crypto at press time.
If the declining trend continues, SHIB’s spot on the list of the top 20 cryptos might become a thing of history.
Should Shiba Inu investors be worried?
However, a quick look at SHIB’s daily chart suggested that the dark days might soon come to an end, as a few market indicators looked bullish. For instance, the Money Flow Index (MFI) registered an uptick, which is a development in the buyers’ favor.
The MACD also displayed the possibility of a bullish crossover at press time. Shiba Inu’s Bollinger Bands pointed out that SHIB’s price was in a less volatile zone, minimizing the chances of an unprecedented plummet. Nonetheless, the Relative Strength Index (RSI) remained bearish.
While the meme coin’s price remained low, investors took the opportunity to buy more SHIB. This was evident from the dip in its supply on exchanges, while its supply outside of exchanges shot up over the last few weeks.
However, whale confidence in the meme coin dwindled as the supply held by top addresses registered a slight decline in the recent past.
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Though a few of the indicators suggested a trend reversal for SHIB, Bone ShibaSwap [BONE] and Doge Killer [LEASH] continued to face bears’ wrath.
At the time of writing, BONE, which is one of the main tokens of Shibarium, was down by more than 4% in the last 24 hours. LEASH, on the other hand, registered a 1% drop in its value over the last day.
