In the world of cryptocurrency, the relaunch of Shibarium’s L2 network is generating excitement among Shiba Inu (SHIB) holders. After technical issues plagued the initial launch, the team behind SHIB has worked to address the problems and relaunch the network in private mode. As a result, SHIB holders are withdrawing billions of tokens from exchanges, indicating anticipation for a potential bull rally. However, the overall sentiment within the SHIB community remains neutral, with active addresses on the decline. The success of Shibarium’s relaunch could potentially ignite a significant price increase for SHIB if market demand spikes and the previous fears subside.
The Shibarium Relaunch
Initial technical problems
The Shibarium L2 network, launched by Shiba Inu (SHIB) on August 16, initially faced technical problems that led to its quick halt. These technical problems raised concerns about the network’s vulnerability and prompted Shiba Inu holders to withdraw their tokens into self-custody. However, the team behind Shibarium has re-launched the network in private mode, aiming for a successful relaunch after resolving the initial technical issues.
Shiba Inu holders withdraw tokens
In anticipation of a potential successful relaunch of Shibarium, Shiba Inu holders have withdrawn a significant number of tokens from exchanges. This week alone, holders have withdrawn 1.8 trillion SHIB tokens worth $14.5 million. This movement of tokens into self-custody is seen as a precautionary measure by holders to protect their assets and to participate in the upcoming Shibarium relaunch.
SHIB Market Supply
The relaunch of Shibarium has had a significant impact on the supply of SHIB tokens in the market. Data from Cryptoquant shows that Shiba Inu exchange reserves have dropped to the lowest level in over a year. This decline in exchange reserves indicates that Shiba Inu holders are moving their tokens out of exchange wallets and into self-custody. The decrease in supply could potentially lead to a supply squeeze if there is a successful relaunch of Shibarium and an increase in market demand.
Drop in exchange reserves
The drop in SHIB exchange reserves started on August 17, just a day after the initial launch of Shibarium. This decline has continued, reaching the lowest level since February 2022. The decrease in exchange reserves suggests that Shiba Inu holders are cautious about keeping their tokens in exchange wallets and instead prefer to hold them in their own wallets. This movement of tokens out of exchanges could be attributed to the technical problems faced by Shibarium during its initial launch, which raised concerns about the security of tokens held on exchanges.
Lowest level in over a year
The decrease in exchange reserves has reached the lowest level in over a year, indicating a significant shift in the supply of SHIB tokens in the market. This decrease in supply could have implications for the price of SHIB, as a decrease in supply often leads to an increase in demand. If the Shibarium relaunch is successful and market demand for SHIB spikes, the combination of reduced supply and increased demand could be a game-changer for the price of SHIB.
Exchange Reserves and Price Uptrends
There is a relationship between exchange reserves and price uptrends in the SHIB market. Historical data shows that recent price uptrends in Shiba Inu have been followed by significant downswings in exchange reserves. This suggests that as the price of SHIB increases, holders prefer to withdraw their tokens from exchanges and hold them in self-custody. The recent withdrawal of 1.8 trillion SHIB tokens from exchanges after the Shibarium relaunch could be seen as a confirmation of this trend.
Relationship between exchange reserves and price
The relationship between exchange reserves and price in the SHIB market indicates that there is a correlation between the two. As exchange reserves decrease, it suggests that more holders are withdrawing their tokens from exchanges, which could lead to a decrease in supply. If this decrease in supply is accompanied by an increase in market demand, it could result in a price uptrend for SHIB. The withdrawal of 1.8 trillion SHIB tokens from exchanges after the Shibarium relaunch could potentially contribute to a decrease in supply and an increase in demand, which could positively impact the price of SHIB.
Withdrawal of 1.8 trillion SHIB tokens
The recent withdrawal of 1.8 trillion SHIB tokens from exchanges is a significant movement of tokens out of exchange wallets. This withdrawal represents more than 10% of Shiba Inu’s average trading volume over the past week. The large-scale withdrawal of tokens suggests that holders are confident in the relaunch of Shibarium and are taking measures to protect and participate in the future success of the network. The withdrawal of these tokens could contribute to a potential supply squeeze if the Shibarium relaunch is successful and market demand for SHIB increases.
Market Demand
The market demand for SHIB has faced some challenges in recent weeks. The recent technical problems faced by Shibarium and the subsequent withdrawal of tokens from exchanges have had an impact on the daily active addresses on the Shiba Inu network. Data from Cryptoquant shows that the number of daily active addresses has declined since August 16, standing at 3,647 as of August 26. This represents a 56% decrease from the peak of 8,214 active addresses recorded on August 16.
Decline in daily active addresses
The decline in daily active addresses indicates that there has been a decrease in the number of participants carrying out economic transactions on the Shiba Inu network. This decrease in activity can be attributed to the recent technical problems faced by Shibarium, which may have caused network participants to refrain from performing transactional activities. The decline in daily active addresses suggests a decrease in market demand for SHIB, which could have an impact on the price of the token.
Neutral price trend
The decline in market demand for SHIB has resulted in a neutral price trend for the token. The price of SHIB has been trading within a narrow range of $0.0000008 over the past few days. This neutral price trend suggests that market participants are awaiting further developments, such as the successful relaunch of Shibarium and an increase in market demand, before making significant moves in the market. The neutral price trend indicates that the market sentiment within the SHIB community remains largely neutral at this time.
Correlation between Shibarium and Market Demand
There is a potential correlation between the relaunch of Shibarium and market demand for SHIB. The recent technical problems faced by Shibarium and the subsequent withdrawal of tokens from exchanges have created uncertainty and led to a decline in market demand for SHIB. However, if the relaunch of Shibarium is successful and market participants regain confidence in the network, there is the potential for a significant increase in market demand for SHIB. The return of users to the network and an increase in transactional activities could contribute to a positive price trend for SHIB.
Potential game-changer for SHIB price
The relaunch of Shibarium could be a game-changer for the price of SHIB. If the relaunch is successful and market demand for SHIB spikes, it could lead to a significant increase in the price of the token. The recent withdrawal of 1.8 trillion SHIB tokens from exchanges indicates that holders are confident in the relaunch of Shibarium and are taking measures to protect their assets. This movement of tokens into self-custody could contribute to a potential supply squeeze, which, when combined with increased market demand, could have a positive impact on the price of SHIB.
Return of users to the network
The relaunch of Shibarium has the potential to bring back users to the Shiba Inu network. If the technical problems faced by Shibarium are resolved and market participants regain confidence in the network, there is the potential for a significant increase in the number of daily active addresses on the network. The return of users to the network could contribute to an increase in market demand for SHIB and positively impact the price of the token.
Shiba Inu Price Prediction
Based on the analysis of on-chain data and the potential impact of the Shibarium relaunch, there is a potential breakout toward $0.000014 for the price of SHIB. The on-chain data suggests that when the market demand returns, SHIB price will likely retest this level. The In/Out of Money Around Price (IOMAP) data, which shows the entry price distribution of current SHIB holders, further validates this prediction. The data indicates that there is significant support and potential resistance around this price level.
Potential breakout toward $0.000014
The analysis of on-chain data suggests that there is potential for a breakout toward $0.000014 for the price of SHIB. This price level represents a significant increase from the current price range of $0.0000008. If the market demand for SHIB increases as predicted, the bulls could push the price of the token toward this breakout level. The potential breakout indicates the possibility of a significant price increase for SHIB if the market conditions align.
In/Out of Money Around Price (IOMAP) data
The In/Out of Money Around Price (IOMAP) data provides insights into the entry price distribution of current SHIB holders. The data shows that there are significant numbers of holders who have bought SHIB at the average price of $0.000011 and $0.000006. If the market demand increases and the price of SHIB rises, holders who bought at the lower average price could potentially cause a momentary pullback. However, if the market demand spikes as predicted, the bulls could push the price toward the potential breakout level of $0.000014.
Potential Price Scenarios
There are two potential price scenarios for SHIB: a bullish rally or a bearish reversal. The outcome will depend on various factors, including the successful relaunch of Shibarium, increased market demand for SHIB, and overall market conditions. If the relaunch of Shibarium is successful and market demand for SHIB increases, it could lead to a bullish rally and a significant increase in the price of the token. On the other hand, if the relaunch is not successful and market demand fails to materialize, it could lead to a bearish reversal and a decrease in the price of SHIB.
Factors influencing price movement
Several factors can influence the price movement of SHIB. These factors include the successful relaunch of Shibarium, increased market demand for the token, overall market conditions, and investor sentiment. The relaunch of Shibarium is a key factor, as it can spark renewed interest in the Shiba Inu network and lead to increased market demand for SHIB. Additionally, market conditions and investor sentiment can also play a significant role in price movement, as they can impact overall market demand and investor confidence in the token.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial or investment advice. The analysis and predictions presented are based on historical data and market trends, and there is no guarantee of future results. Investors should conduct their own research and consult with a professional financial advisor before making any investment decisions.
About the Author
Ibrahim Ajibade is an experienced research analyst with a background in Commercial Banking. He has worked with several Web3 startups and financial institutions, gaining expertise in market analysis and investment strategies. Ibrahim’s passion for cryptocurrencies and blockchain technology has led him to closely follow and analyze the market trends and developments. His insights and expertise provide valuable perspectives for investors and enthusiasts in the crypto space.
Conclusion
The relaunch of Shibarium has the potential to ignite a bull rally for Shiba Inu (SHIB). Despite the initial technical problems, the relaunch has sparked interest and confidence among SHIB holders, as evidenced by the withdrawal of 1.8 trillion tokens from exchanges. The decrease in exchange reserves and the decline in daily active addresses indicate the impact of the relaunch on market supply and demand. The correlation between Shibarium and market demand suggests that a successful relaunch could be a game-changer for the price of SHIB. The potential breakout toward $0.000014 and the analysis of IOMAP data further support this prediction. However, the outcome will depend on various factors, and investors should conduct their own research and seek professional advice before making any investment decisions. The relaunch of Shibarium highlights the importance of market demand and user participation in driving the price and success of cryptocurrencies.
