The price of Shiba Inu has continued its downward trajectory, approaching a critical support level, despite Shibarium reaching a significant milestone.
Shiba Inu (SHIB), the second-largest meme coin, fell to $0.00001215, marking its lowest point since March 14, and is now 23% below its peak this year.
This downturn followed the announcement that Shibarium, its layer-2 network, surpassed 1 billion transactions. This is especially noteworthy considering the network recorded 948 million transactions on the same day last month.
Additionally, Shibarium is approaching another milestone with a total of 194.59 million addresses, indicating it may exceed the 200 million mark later this month or in May. Furthermore, the total gas used on Shibarium has reached 38 trillion BONE and is on course to hit 40 trillion.
In a post on X, Shibarium Updates highlighted the network’s transition from a phase of experimentation to what they refer to as a “gold age” of maturity, infrastructure, and tangible value. The transformation was likened to a shift “from green to gold” and “from memes to meaning.”
Thus, the emergence of a new ‘gold era’ for Shibarium has the potential to accelerate ecosystem growth. According to DeFi Llama data, the network’s total value locked stands at over $2.17 million, which is modest compared to newer blockchains like Base and Berachain.
The progress of Shibarium could positively impact Shiba Inu, as some BONE fees within the network are converted into SHIB and subsequently burned.
Technical Analysis of Shiba Inu Price
The daily chart indicates that SHIB has been on a consistent downtrend for the past few months, declining from a high of $0.00003340 in November to $0.00001088.
Recently, it rebounded to a peak of $0.00001570 and is now approaching a support level at $0.00001080, which suggests the potential formation of a double-bottom pattern, a common bullish reversal indicator.
This pattern follows the emergence of a falling wedge, characterized by two descending and converging trendlines. A bullish breakout is usually anticipated when these two lines are nearing their convergence.
As a result, the coin is expected to bounce back once the current crypto market downturn, influenced by Trump’s tariffs, subsides. Further gains will be confirmed if SHIB surpasses the neckline at $0.00001570. If this occurs, it may rally towards the 50% Fibonacci retracement level at $0.000020, implying a potential 60% increase from present levels.