Shiba Inu Price Prediction as Key Shibarium Metric Jumps 137%

Shiba Inu price has stabilized in the past few days as the recent selling spree ended and some key fundamental catalysts emerged. The token was trading at $0.0000098 today, November 13, up approximately 20% from its lowest level this year. So, will the SHIB token rebound as the Shibarium network stages a comeback?

Shiba Inu Price Could Benefit From Shibarium Comeback

One of the top catalysts for Shiba Inu price is that Shibarium, its layer-2 network, has started to stage a comeback, two months after ShibaSwap its biggest DeFi platform, suffered its biggest exploit, leading to the freezing of the network.

Data compiled by DeFi Llama shows that the total value locked (TVL) in the network has jumped by 137% in the last seven days. This surge was notable because most chains, including Ethereum and Solana, have lost substantial assets in this period.

The total value locked in the network jumped to $1.86 million, its highest level since September 16. This surge was driven by ShibaSwap, whose assets have increased by 137% in the last 7 days to $1.15 million.

Other players of its ecosystem have also gained substantial assets in this period..WoofSwap, the second-biggest player in the network, rose by 132% in the last 7 days to $442k. ChewySwap’s TVL has soared by 140%, while DogSwap more than doubled.

More data compiled by Shibarium Stats shows that the network’s total addresses have jumped to over 272 million today, while new transactions have started rising gradually.

Shibarium is a crucial component of the Shiba Inu ecosystem. It was created to help transition Shiba Inu from being a mere meme coin into a utility token. Most importantly, its goal was to help reduce the number of SHIB in circulation as its fees were transformed into BONE and then incinerated.

The network came under intense pressure in September when hackers targeted ShibaSwap and siphoned millions of tokens.

Shiba Inu Exchange Balances are Plunging

Another potential catalyst for the Shiba Inu price is the downward trend in token supply on exchanges.

Data compiled by Nansen shows that the number of tokens in exchange has dropped to 284 trillion, down from 297 trillion in August this year. The chart shows that the outflows from exchanges is accelerating.

Exchange outflows are one of the most bullish catalysts for any cryptocurrency, as they signal two key things. First, it is usually a sign that investors are not selling their tokens, which is typically a good thing. Second, increased exchange outflows is a sign that there is increased buying by investors.

On-chain data also suggests that whales and smart money investors have bought Shiba Inu in the last 90 days. Smart money investors now hold 43 billion SHIB tokens, up by 8.5 in this period. Whales have increased their positions by 120% in this period to 105 billion tokens. Also, SHIB’s burn rate has jumped this week.

Shiba Inu Price Technical Analysis

The daily timeframe chart shows that the Shiba Inu price has been in a strong downward trend this year, a move that has cost investors billions of dollars. This decline coincided with the sell-off in other Ethereum and Solana meme coins like Pepe and Dogelon Mars.

The eight-hour chart shows the coin may have a short-term surge in the coming weeks. For one, it has formed an inverse head-and-shoulders pattern whose head is at $0.00000835, its lowest level this month.

The token has also formed a small bullish flag pattern and is attempting to move above the 50-period Exponential Moving Average (EMA).

Therefore, there is a likelihood that the Shiba Inu price may rebound in the coming weeks, potentially reaching the key resistance level at $0.0000116, which aligns with the 50% Fibonacci Retracement level. A drop below the key support at $0.0000094 will invalidate the bullish outlook.