- Whale traders drove a 2.8 trillion SHIB surge on Binance, sparking speculation about potential sell-offs, trading, or staking.
- SHIB’s price rose 1.48% to $0.00002189 but continues to struggle against key resistance levels despite the trading surge.
- Market uncertainty persists as SHIB burn efforts and 18.64 trillion SHIB in open derivatives contracts fail to inspire significant price movement.
Shiba Inu ($SHIB), the second-largest meme coin, climbed to a weekly high of $0.00002215, marking a 12% rebound from its recent low. However, it continues to trail behind emerging meme coins like Fartcoin, ai16z, and Dogwifhat.
Shibarium’s Challenges and Impact on SHIB
The lackluster performance of Shibarium, Shiba Inu’s Layer-2 network, has raised concerns. Despite nearing 800 million transactions, fee collection remains modest, with only 640 BONE ($300) collected on Tuesday. This is significant because transaction fees are partly used to burn SHIB tokens, and recent data from Shibburn indicates a sluggish burn rate.
A Potential Comeback Amid Broader Crypto Gains
SHIB could still stage a strong rally as the crypto market rebounds. Bitcoin’s approach to the critical $100,000 resistance, buoyed by positive inflation data and anticipation of Donald Trump’s inauguration, might lift altcoins like SHIB alongside it.
Technical Indicators Signal Bullish Momentum
On the daily chart, SHIB has formed a hammer candlestick, signaling a potential reversal after Monday’s market dip. Additionally, a falling wedge pattern, typically indicative of a bullish breakout, has taken shape. With the Relative Strength Index (RSI) showing a bullish divergence, analysts predict SHIB could rally to $0.000033, a 50% gain from current levels.
However, if the price slips below the December low of $0.00001853, this optimistic outlook could be invalidated, signaling further downside risks.
