Can SHIB Stabilize After Dropping To $0.0000122?

• SHIB price declines, but Shibarium surpasses 1B transactions, showing strong network use.  
• Trading volume jumps 39.78%, signaling rising investor activity despite minor price drop.  
• Futures market shows mixed sentiment, while technicals hint at possible short-term stabilization.

Shiba Inu (SHIB) continues to face downward pressure, with its price dropping nearly 0.20% over the past 24 hours. While the token’s value has declined, its core network has shown signs of growth, highlighted by a major event on the Shibarium Layer 2 network.

Despite the price drop, activity on the Shibarium network has increased. Since its launch in August 2023, the Ethereum-based Layer 2 solution has processed over 1 billion transactions. This development marks a major achievement for the network, which was designed to reduce transaction costs and improve efficiency on the Ethereum chain.

The quick transaction growth positions Shibarium as one of the more active networks among recent blockchain innovations. The move also indicates continued user engagement within the Shiba Inu ecosystem, even as the token experiences negative price performance.

Trading Volume Spikes as Price Moves Sideways

Shiba Inu’s trading volume grew by 39.78% and has now reached $261 million daily. However, the token slightly depreciated by 0.20% within the same period. Such results indicate relatively higher trading activity that might have been occasioned by speculative or short-run trading.

SHIB’s market capitalization stands at $7.47 billion, matching its fully diluted valuation. The circulating supply is currently at 589.25 trillion SHIB, with a maximum supply cap of 589.55 trillion tokens. 

The token briefly fell below $0.0000124 before recovering later in the day and stabilizing near $0.00001267. In evening trading, a short-lived spike above $0.0000128 was observed. The asset’s volume-to-market cap ratio now stands at 3.48%, reflecting active trading despite limited price gains.

Funding Rates Reveal Market Uncertainty

The SHIB funding rates have been oscillating from the beginning of the year up to the early part of April. The rates, which indicated the cost of holding long and short positions, underwent fluctuations, and for a certain period, they were positive, and for another, they, they became negative.

Funding rates held mostly above the zero line from January to mid-February, indicating improving bullish sentiment. However, the negative trends persisted more strongly by the end of February, and there was a daily decline by early March. 

Despite these shifts, SHIB’s spot price showed relatively minor movement, indicating that perpetual futures traders were more reactive than spot market participants.

Indicators Suggest Possible Price Stabilization

Technical signals from SHIB’s 4-hour chart point to a potential consolidation phase. The Relative Strength Index (RSI) is at 50.45 in the neutral territory to present a neutral market sentiment. After reaching the level nearly 30, the RSI has started a recovery process with an upward movement though the recovery is quite moderate.

However, the MACD line has formed a bullish crossover with the signal line as the MACD line has crossed above the signal line. The histogram shows signs of an improving trend for the year, but it remains negative.