What rising activity on Shibarium means for SHIB

1 year ago 56

Shibarium’s network activity saw growth last weekend.
SHIB holders have started taking profit.

Last weekend, Shiba Inu’s [SHIB] Layer 2 (L2) network Shibarium witnessed an uptick in the daily count of active accounts on the network.

An on-chain assessment of the L2’s performance revealed that between 11th and 13th November, the daily count of addresses on Shibarium that completed at least one transaction went up by 52%.

Source: Shibariumscan

The period also saw a surge in the number of new transactions, according to data retrieved from Shibariumscan. The data provider found that, between 11th and 13th November, the number of new transactions executed on Shibarium increased by 19%.

Since its launch, 3.74 million total transactions have been completed on Shibarium by 30,000 accounts.

SHIB is well positioned, but for how long?

After a period of extended rally, SHIB’s price peaked at $0.0000095 on 11th November, which was its highest price level in the past two months.

Declining by 10% since then, the leading meme token exchanged hands at $0.00000867 at press time, according to data from CoinMarketCap.

While the token’s price has experienced a slight correction, the bulls remain in control of its spot market.

An assessment of its Directional Movement Index indicator on a 24-hour chart showed the positive directional index (green) resting solidly above the negative directional index (red)

When an asset’s DMI is positioned in this manner, it indicates that the trend is strong and upward. This means that the price is more likely to continue its uptrend till a major shift in sentiment occurs.

Although some profit-taking activity occurred last weekend, day traders continue to accumulate SHIB tokens. Key momentum indicators remained above their neutral lines at press time. SHIB’s Relative Strength Index (RSI) was 61.62, while its Money Flow Index (MFI) was 62.44.

These values showed that buying activity continues to outpace token distribution in SHIB’s spot market.

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

However, the token’s Chaikin Money Flow (CMF) has initiated a descent. This signaled a steady decrease in liquidity flow in the SHIB market. This is due to the profit-taking activity that has begun to gain momentum.

At press time, SHIB’s CMF rested above the zero line at 0.15, suggesting some strength remained in the market. Should this indicator fall below the zero line into the negative territory, SHIB’s price might experience a severe decline.