Shiba Inu price was on edge as the sentiment among crypto investors waned and whales stayed on the sidelines. It also wavered as Shibarium’s addresses neared the 270 million milestone.
Summary
- Shiba Inu price has formed a triangle pattern on the weekly chart.
- Shibarium addresses are nearing their 270 million milestone.
- However, the total value locked and fees in the network have slumped.
Shiba Inu price is at risk despite Shibarium network growth
Shibarium, the layer-2 network that Shiba Inu (SHIB) launched in 202, is sending mixed signals. On the positive side, the number of active addresses in the network jumped to 268 million and is slowly approaching the key milestone of 270 million.
The network handled over 1.08 million transactions in the last 24 hours, bringing the cumulative total to 1.54 billion.
While these metrics are good, many others paint a picture of a struggling network at a time when layer-2 networks like Base and Arbitrum are booming. For example, Shibarium’s transactions in the last 24 hours totaled 20.08 BONE, equivalent to $3.30.
Another metric shows that Shibarium’s total value locked in decentralized finance has plunged by 12% in the last 30 days to $1.63 million. This makes it one of the smallest players in the layer-2 industry.
Shibarium’s network growth is important for Shiba Inu price because of the general sentiment. It is also bullish because its fees contribute to the Shiba Inu burn rate.
Shiba Inu price also remains on edge because of the falling whale activity in the network. Nansen data shows that whales now hold 45 billion SHIB tokens, much lower than 97 billion in June. Similarly, smart money investors hold 44.5 billion tokens, much lower than 53 billion in June.
SHIB price technical analysis
The weekly-timeframe chart shows that Shiba Inu price has remained in a tight range this year. This consolidation has formed a symmetrical triangle pattern whose two lines are about to converge.
The triangle happened after it plunged sharply from a high of $0.00003330. As such, this pattern is part of the bearish pennant pattern, which often leads to more downside.
SHIB price has remained below the 50-week and 25-week moving averages. Therefore, there is a risk that the coin will have a strong bearish breakout, potentially to the support at $0.0000069, its lowest level in July this year.
