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Shiba Inu Price Approaches Key Support Level Amid Shibarium Milestones

The Shiba Inu price continues to experience downward pressure, heading toward a crucial support level despite notable achievements by its layer-2 network, Shibarium. As of now, Shiba Inu has dropped to $0.00001215, marking its lowest level since March 14 and a 23% decline from its highest swing this year.

Shibarium’s Milestones and Ecosystem Growth

Shibarium, the layer-2 blockchain network associated with Shiba Inu, recently surpassed the impressive milestone of 1 billion transactions. This growth is significant, considering the network had recorded 948 million transactions just one month earlier.

Additionally, Shibarium is nearing a major milestone in terms of total addresses. As of now, the network boasts 194.59 million addresses, suggesting it might cross the 200-million mark later this month or in May. Furthermore, the cumulative gas usage on Shibarium has climbed to 38 trillion BONE and is projected to reach 40 trillion soon.

Shibarium’s Transition to the “Gold Age”

According to updates shared on social media, Shibarium is transitioning from an era of experimentation to what is being described as a “Gold Age” of maturity, infrastructure development, and real-world utility. This evolution signifies the network’s shift from a focus on memes to meaningful applications, setting the stage for faster ecosystem growth.

“Shibarium is entering its Gold Era, moving from experimentation to maturity, infrastructure, and real-world value.”

Despite its progress, Shibarium remains smaller compared to emerging networks like Base and Berachain, with a total value locked (TVL) of approximately $2.17 million, according to DeFi Llama data.

Impact on Shiba Inu Token (SHIB)

Shibarium’s success positively impacts Shiba Inu’s ecosystem as it utilizes BONE tokens for transaction fees. A portion of these fees is converted into SHIB tokens and subsequently burned, reducing the supply and potentially increasing SHIB’s value over time.

Technical Analysis of Shiba Inu’s Price

The technical analysis reveals that Shiba Inu (SHIB) has been in a prolonged downtrend. Since hitting a high of $0.00003340 in November, the token has fallen to $0.00001088. While SHIB rebounded to $0.00001570 recently, it is now approaching the critical support level of $0.00001080.

This level indicates the potential formation of a double-bottom pattern, a bullish reversal signal often seen in technical analysis. Additionally, SHIB has formed a falling wedge pattern, characterized by two descending and converging trendlines. A breakout above these lines typically signals upward momentum.

If SHIB manages to break above the neckline resistance at $0.00001570, it could rally toward the 50% Fibonacci retracement level at $0.000020, representing a potential 60% gain from current levels.

Key Takeaways for Investors

  • Shibarium’s growth indicates robust ecosystem development, with increasing transactions, addresses, and gas utilization.
  • The network’s transition to its “Gold Age” may drive greater adoption and real-world applications.
  • Technical analysis suggests SHIB is nearing critical support levels, with potential bullish signals forming.
  • Investors should monitor SHIB’s price movements closely, especially in relation to broader market trends.

While Shiba Inu’s current price trajectory may raise concerns, its long-term outlook depends on Shibarium’s continued success and broader market recovery. Investors should remain informed about developments within the ecosystem to make strategic decisions.

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