Here’s why Shiba Inu price is soaring

crypto.news · 2024-09-26T07:37:02+00:00

Shiba Inu rises to its highest level since July as Shibarium's fees surge, indicating increased network activity. Token outflow is a bullish indicator, suggesting investors are holding coins in personal wallets. Technical indicators also suggest the token will continue rising.

crypto.news

2024-09-26 07:37:02

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Shiba Inu made a strong comeback on Sept. 26, soaring to its highest level since July 27, as Shibarium’s fees surged.

Shibarium fees are rising

Shiba Inu (SHIB), the second-largest meme coin, jumped to $0.000017 as on-chain data showed that Shibarium’s fees rose to 438, significantly higher than this month’s low of 27, marking a 1,522% increase.

Shibarium is a layer-2 network launched by Shiba Inu’s developers. A big increase in fees indicates that the network is seeing more activity. Indeed, data from Shibariumscan shows that the number of new transactions rose to 8,025 on Sept. 26 from this month’s low of 2,186.

Shibarium transaction fees | Source: ShibariumscanHigher Shibarium fees are also significant because part of the collected BONE revenue is converted to SHIB and then burned. Data from Shibburn shows that Shiba Inu’s burn rate rose by 640% in the last 24 hours to 5,555,360 tokens.

Shiba Inu’s surge also coincided with the ongoing meme coin rally. Most meme coins have rallied by over 5% in the last 24 hours, pushing the total market cap to $50.9 billion. Pepe (PEPE) rose by 7.5%, while Mog Coin rose by 14%.

Popcat (POPCAT) has also risen by 15% in the last seven days, pushing its market cap to over $1 billion. Meme coins often exhibit a degree of correlation.

Additional data from Nansen shows that Shiba Inu has had a net outflow of 41 million tokens in the last seven days. As a result, the total supply of tokens on exchanges has moved to 25.48%. Token outflow is a bullish indicator, suggesting that many investors are holding their coins in personal wallets.

Shiba Inu crossed key resistance

Shiba Inu price chart | Source: TradingViewShiba Inu’s rise was also driven by positive technical indicators. It formed a double-bottom chart pattern and moved above the neckline at $0.000016, its highest swing on Aug. 24.

SHIB also rose above the descending trendline that connects the highest swings since July 16. Additionally, the Relative Strength Index continued rising, signaling that momentum is building.

This price action suggests that the token will continue rising as bulls target the key resistance at $0.00002, its highest level in July.

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