Shiba Inu Drops 4.8% Despite Shibarium's 1 Billion Transactions

Shiba Inu (SHIB) has been experiencing a decline in price, with a 4.8% drop in the last 24 hours, reaching $0.0000122. This decline is part of a broader bearish trend, with weekly losses reaching 18% and monthly losses at 13%. Despite this, the Shiba Inu ecosystem has seen significant developments with its Ethereum-based layer-2 network, Shibarium, surpassing 1 billion total transactions in under two years. This milestone is notable as it was achieved much faster than Bitcoin's 15-year timeline.

Shibarium's success is evident in its daily transaction volume, averaging over 4 million, and its support from more than 194 million wallet addresses. The network's 5-second average block time has also contributed to its efficiency. These developments have led to speculation about SHIB's price recovery potential, despite the current market slump. The Total Value Locked (TVL) in Shibarium has increased by 24%, reaching $2.5 million in March. Additionally, platforms like ShibaSwap have seen a 37% jump in TVLs, further boosting the ecosystem's growth.

Analysts are debating SHIB price prediction models against these ecosystem developments. Some believe that these improvements could push SHIB closer to its last peaks of $0.00008 as it continues to grow on Shibarium. The recent 20% spike in SHIB’s trading volume after the milestone has added to the optimism surrounding the cryptocurrency. However, the market remains volatile, with SHIB experiencing mixed fortunes on April 1. Early in the day, SHIB consolidated before hitting resistance at $0.00001294, followed by a renewed bearish pressure that led to the RSI going to the oversold zone. Later, a breakout was confirmed by the golden cross of MACD and SHIB upward. By the afternoon, severe selling denied SHIB's upward movement, with the RSI moving into the overbought territory and a death cross forming, potentially hinting at a reversal.

As of 11:28 UTC on April 2, SHIB is trading around $0.00001236, struggling to break the resistance around $0.00001313, while the support level has been established around $0.00001212. Traders are advised to monitor these levels for market confirmation of trade setups before any significant move. The future of SHIB remains intertwined with market volatility and ecosystem developments. The recent achievements of Shibarium, including the 1 billion transactions milestone and the increase in TVL, suggest a potential bounceback for SHIB. Investors will need to keep an eye on Shibarium metrics, such as the value locked in DeFi platforms like ShibaSwap and the daily transaction volume, as these will be crucial for SHIB's performance in the coming months or even years.