- Shiba Inu’s price has surged above $0.00001, marking a 20% gain in December, fueled by heightened network activity and new-user acquisition.
- The anticipation of the Shibarium L2 token burn, aiming to reduce circulating supply, has sparked investor frenzy, with technical indicators suggesting potential for further bullish momentum.
Shiba Inu (SHIB) has sent shockwaves through the crypto market as its price surges beyond the elusive $0.00001 mark, marking December gains of over 20%. The meme coin, part of the trinity alongside Dogecoin (DOGE) and PEPE, has witnessed unprecedented network activity and new-user acquisition in the past week. What’s fueling this momentum? The answer lies in the eagerly awaited Shibarium L2 token burn.
Shibarium L2 Ignites Momentum
Shiba Inu’s recent price surge aligns with the initiation of the Shibarium L2 token burn, a groundbreaking development announced by the SHIB team. The Shibarium network, introduced to enhance transaction speeds and scalability, has seen over 35 million transactions since its launch in August. Now, with the promise of burning 70% of base fees generated from transactions, Shiba Inu aims to reduce its circulating supply, potentially propelling its price even higher.
Record New Addresses Signal Investor Frenzy
IntoTheBlock, a leading on-chain data analytics tool, reports a historic peak in SHIB new addresses – an indicator of burgeoning interest and potential investor frenzy. The Shibarium token burn announcement seems to have sparked a surge in new investors, with 2,240 new addresses created on Wednesday, Dec 6, a figure not seen since August.
Network Growth as a Bullish Signal
Network Growth, a crucial on-chain metric, highlights the rate at which Shiba Inu’s ecosystem is attracting new investors. The significant increase in new addresses is interpreted as a bullish signal, suggesting growing market demand for SHIB. As new users enter the ecosystem and engage in economic transactions, the potential for a bullish price action becomes more evident.
Challenges Ahead: $0.000011 Resistance and Bollinger Bands
While the short-term shows an impressive 21% growth in December, the journey for Shiba Inu doesn’t lack challenges. Technical indicators point to the $0.000011 resistance as the next significant hurdle. Breaking through this barrier is crucial for the bulls to reach a new 2023 peak. The Bollinger Bands indicator further substantiates the growing bullish momentum, indicating a recent break above the upper band at $0.000099.
Bulls Eye New Peaks Amid Token Burn Anticipation
As Shiba Inu enthusiasts eagerly anticipate the Shibarium L2 token burn, the crypto’s ecosystem experiences an influx of new users and heightened network growth. The bullish indicators, coupled with the technical analysis, suggest that the SHIB price rally is far from over. Investors are on the edge of their seats, watching closely as Shiba Inu aims to break through resistance and potentially soar to new heights in the crypto market.
