Shiba Inu price remained under pressure this week in line with the ongoing performance of other cryptocurrencies. SHIB dropped to $0.000020, much lower than the November high of $0.000033. So, will the SHIB coin rebound as Shibarium nears a key transaction milestone?
Shibarium transactions are rising
Shiba Inu price has dropped even as Shibarium, its layer-2 network, continues to progress in transactions.
According to ShibariumScan, the number of completed transactions are about to cross the 800 milestone. The network has handled 788 million transactions since its inception, helped by its growing popularity.
Shibarium handled 4.7 million transactions, collecting 644 BONE in transaction fees. The average transaction fee in that period was just $0.000057, which explains its minuscule total fees.
Data shows that the average transaction fee on Shibarium has continued falling. It moved from 0.0004 BONE in December to 0.000057. These numbers are important for Shiba Inu price because some BONE tokens play a part in its burning mechanism.
Shibarium’s total value locked (TVL) on its decentralized finance (DeFi) ecosystem has continued falling this year. It peaked at $6.27 million in November last year to $3.36 million today. Most of its ecosystem dApps like ShibaSwap, WoofSwap, and ChewySwap have shed over 20% of their assets in the last 30 days.
Shiba Inu price retreated because of the ongoing crypto sell-off. Bitcoin moved briefly below $90,000, while the crypto fear and greed index moved to the neutral point of 47 from last year’s high of 90.
Read more: Cardano, BNB, Solana, and Altcoin Prices Brace For 2 Key Events
Shiba Inu price forecast
SHIB chart by TradingView
The daily chart shows that the SHIB price peaked at $0.0000333 in November and has now dropped by about 40% to the current $0.000020. The coin has moved below the 50-day moving average.
Most importantly, the token has formed a bearish flag chart pattern, a popular downward continuation sign. This pattern comprises a long vertical line followed by a rectangle.
The Shiba Inu price has also formed a small head-and-shoulders chart pattern, often leading to a bearish breakout. Therefore, the path of least resistance for the SHIB price is bearish. The next point to watch is the 78.6% retracement point at $0.00001560.
The alternative scenario is where the token rebounds and retests the upper side of the flag at $0.000024.
