The last 24 hours have seen the Shiba Inu token record a drop in its price by about 1%, as it reached $0.00000993, with the broader crypto market also recording a dip, albeit a smaller one.
The last week has seen the SHIB token see a decline of 3% and the last 30 days have seen its price fall by 11%, even though the second-largest meme coin has recorded gains of 22% since the start of 2023.
This is significantly less than the gains that bigger cryptocurrencies have enjoyed during the same time period, such as Bitcoin (BTC) and Ethereum (ETH).
Trading volume
However, it is important to note that SHIB has seen its 24-hour trading volume reach the $100 million mark, which indicates that there is an increase in volatility and liquidity.
This could see further rises in the future. In addition, there might be significant rallies in store for the SHIB token, given that the layer-2 protocol called Shibarium is also awaiting its complete public launch.
According to the current indicators, the Shiba Inu token may have some more declines to record first before it can make a significant recovery.
The indicators
The 30-day moving average of the Dogecoin rival is quite close to dropping below its 200-day moving average, which would see a ‘death cross’ that signals more declines.
Likewise, the relative strength index (RSI) of the SHIB token has also been quite low since the previous month and could see even more declines.
In fact, there is a possibility that it might go below 30 before it starts to rise again. This is also strengthened by the fact that there has been a consistent decline in the support level of the SHIB token in the last few weeks.
It indicates that the market of the meme token is not strong enough to be able to fight against more declines in the short-term.
But, the slight increase in the trading volume could also lay the foundation for a potential recovery in the next few days.
The data
Even though the SHIB token has recorded losses recently, Whale Stats’ data shows that it remains the most traded ERC-20 token amongst big investors.
Moreover, it is also the most widely held token in whale holdings in dollar value. Since whales are still in favor of the token, it can be predicted that SHIB might make a recovery eventually.
Similarly, the launch of the layer-2 network could also function as a catalyst that could lead to a recovery in the next couple of weeks.
Currently, the beta phase of Shibarium is available, but with its full public launch, users will be able to enjoy cheaper and faster transactions.
Data shows that the beta version is attracting lots of contributors and testers and it has already processed more than 15 million transactions.
