As the Shiba Inu (SHIB) community closely watches the relaunch of the Shibarium L2 network, excitement and apprehension intermingle. A snapshot of the on-chain indicators unveils a complex landscape that could either spark a bullish revival or plunge SHIB into uncertainty. Drawing insights from recent developments, this article dissects the contrasting scenarios that the reinvigorated Shibarium launch may usher in.
Technical Hurdles and Relaunch Resilience
In a bid to overcome technical challenges that plagued its initial launch, the Shiba Inu team has revamped the Shibarium L2 network in private mode. Months of rigorous testing and trials culminated in a promising mainnet launch on August 16, only to be curtailed due to unforeseen technical glitches.
Concerns over network vulnerabilities prompted SHIB holders to migrate their tokens into self-custody. The market supply of Shiba Inu witnessed a significant contraction, reaching its lowest point in over a year, according to data compiled by BeInCrypto.
Shifting Market Dynamics: Supply and Demand
An intriguing market dynamic emerged following the initial Shibarium launch, as holders withdrew 1.8 trillion SHIB tokens worth $14.5 million from exchanges within a span of nine days. This substantial reduction in exchange reserves indicates a potential supply squeeze that could come into play after a successful Shibarium relaunch.
As the Shiba Inu community anticipates renewed demand, the interplay between dwindling supply and resurging interest holds the potential to reshape SHIB’s price trajectory.
Market Sentiment Oscillation
Despite the market’s fervent enthusiasm, the SHIB community’s sentiment appears relatively neutral. Active addresses on the Shiba Inu network have dwindled since August 16, reflecting a decline of 56% from their peak.
This decrease signifies a cautious approach adopted by network participants in light of recent network fragilities associated with Shibarium. The correlation between the network’s health and investor activity becomes apparent, pointing to the need for a significant surge in user engagement for potential bullish outcomes.
The Pendulum Swings: Price Predictions
Gauging the potential price movement in light of the Shibarium relaunch introduces an array of possibilities. On-chain data analysis suggests that Shiba Inu’s price might revisit the $0.000014 mark once market demand rekindles.
Likewise, the In/Out of Money Around Price (IOMAP) data complements this projection, hinting at a potential rally to $0.000014 if bullish sentiment dominates. Conversely, if Shibarium-related fear, uncertainty, and doubt (FUD) persist, the bearish traders’ influence could trigger a downward reversal to $0.000006.
The Verdict: A Crucial Juncture for SHIB
The fate of Shiba Inu hangs in the balance as the Shibarium relaunch unfolds. The dichotomy between positive indicators like supply reduction and potential demand resurgence, and the cautious sentiment stemming from recent network setbacks, epitomizes the uncertainty.
SHIB’s journey from its value of $0.000008 over the weekend hinges on user re-engagement and the market’s response to the reinvigorated Shibarium. As the cryptocurrency world eagerly watches, the relaunch sets the stage for a defining moment in SHIB’s trajectory that may either make it to $0.000014 or break it down to $0.000006 levels.
In line with these forecasts, investors and traders are always advised to exercise due diligence as they tread along the line of these opposing scenarios.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager of a consultancy firm.