Shiba Inu (SHIB) price has bounced back above $0.000008 as the relaunched Shibarium L2 network gradually gains traction. On-chain analyzes how Shiba Inu price could react if this boosts investor confidence in the coming weeks.
On August 25, the Shiba Inu team relaunched the Shibarium L2 scaling network after technical problems beset the initial mainnet launch. Barely a week later, confidence has grown across the Shiba Inu (SHIB) community. Can this propel SHIB’s price to new peaks in the coming weeks?
Shibarium Has Crossed the 150,000 Wallet Milestone
Confidence seems to be returning to the Shiba Inu community as the Shibarium scaling platform begins to regain traction. On August 29, the L2 network hit the milestone of 150,000 wallet addresses created, according to the real-time data culled from the Shibarium Scan tool.
Also, the Daily Transactions have started to trend upward once again. At the close of August 28, Shibarium attracted 66,058, up 64% from 40,433 transactions registered on the previous day.
The Shibarium L2 Network has been touted to bring a new dimension of growth to the Shiba Inu ecosystem. Firstly, it billed to deepen the adoption of SHIB tokens globally and importantly increase the SHIB burn rate and transaction speeds significantly.
Unsurprisingly, the recent upturn and smooth sailing mainnet transactions have already triggered a 5% SHIB price bounce on August 29. If each of these propositions holds true, the growth in Shibarium traction could further propel Shiba Inu’s price above the $0.000010 mark in the coming weeks.
Crypto Investors are Mounting Orders to Buy SHIB
In further confirmation of the growing confidence within the SHIB community, there has been an influx of SHIB purchase orders across crypto exchanges. As shown below, the bulls have placed active orders to buy 1.9 trillion SHIB. This is significantly higher than the 1.2 trillion SHIB tokens currently up for sale.
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The Exchange On-chain Market Depth chart shows the volume of active orders for SHIB placed across recognized crypto exchanges.
As seen above, the market demand for SHIB has now outpaced supply by more than 700 billion SHIB tokens. This suggests that the successful relaunch of the Shibarium network may have buoyed investor confidence in Shiba Inu.
SHIB Price Prediction: Potential Bounce Back Above $0.000014
Based on the abovementioned on-chain indicators, Shiba Inu could likely bounce back toward $0.000014.
The Global In/Out of Money Around Price (GIOM) data, which shows the purchase price distribution of current SHIB holders, also lends credence to this prediction.
However, 364,130 addresses had bought 268 trillion SHIB at the average price of $0.000011. If they book profits early, they could trigger a bearish reversal.
But if the market demand intensifies, SHIB price could bounce back above the $0.000014 territory as predicted.
In contrast, the bears could seize control if the Shiba Inu price drops below $0.000007. But in that case, the 139,990 addresses that bought 76.7 trillion SHIB at the average price of $0.00008 could trigger a rebound.
However, if that support level cannot hold, SHIB could drop as far as $0.000006.
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