Shiba Inu token moved sideways as investors focused on the weak Shibarium metrics. The second-biggest meme coin was trading at $0.00001885 on Friday, where it has been in the past few days.
It has risen by 12% in the past seven days, underperforming other coins like Dogecoin, Floki, Brett, and Cat in a dogs world, which have surged by over 20%. Other popular meme coins like Turbo, SPX6900, and Book of Meme have soared by over 40% in the same period.
Disappointing Shibarium metrics
Shiba Inu token has underperformed other meme coins in terms of price action and volume. Data by CoinGecko shows that SHIB’s volume in the last 24 hours stood at $771 million, much lower than Dogecoin’s $1.9 billion and Pepe’s $1.78 billion.
SHIB’s volume was also lower than Dogwifhat, the Solana meme coin, which had over $837 million in volume.
The token has also had weak performance because of the recent trends in Shibarium, the layer-2 network. Data by Shibariumscan shows that the number of active accounts in the network dropped to a record low of 156, down from almost 4,000 in August.
More data shows that the number of Shibarium accounts have stalled at 126k, while the number of new transactions has fallen.
Shibarium activity is usually important for Shiba Inu because some of the fees generated in the network are converted to SHIB and burned.
This partly explains why the SHIB burn rate has dropped sharply in the past few days. Data by Shibburn shows that 2,502 burns occurred in the last 24 hours, a 72% drop from a day earlier.
On the positive side, the total value locked (TVL) in Shibarium has bounced back in the past few days. It rallied to $3.65 million, higher than the August low of $1.2 million. Still, it remains significantly lower than other chains like Base and Arbitrum.
Shiba Inu price analysis
SHIB chart by TradingView
The daily chart shows that the SHIB price bottomed at $0.00001278, where it formed a triple-bottom pattern.
It has remained between the 78.2% and 61.8% Fibonacci Retracement point. Most importantly, the token has moved above the 50-day and 200-day moving averages, which are now about to form a golden cross pattern.
Therefore, a golden cross pattern will point to more gains, with the initial target being at $0.00002165, its highest point on September 28, and 15.7% above the current level. Remember, the last time that this cross happened was in December and the token staged a strong comeback.
