Journalist
Posted:
- Shibarium’s network activity saw growth last weekend.
- SHIB holders have started making profits.
Last weekend, Shiba Inus [SHIB] Layer 2 (L2) network Shibarium witnessed an increase in the daily number of active accounts on the network.
An on-chain assessment of the L2’s performance found that between November 11 and 13, the daily number of addresses on Shibarium that completed at least one transaction increased by 52%.
Source: Shibarium scan
According to the data collected, there was also an increase in the number of new transactions during this period Shibarium scan. The data provider found that between November 11 and 13, the number of new transactions executed on Shibarium increased by 19%.
Since launch, a total of 3.74 million transactions have been completed on Shibarium across 30,000 accounts.
SHIB is well positioned, but for how long?
After a period of prolonged rally, SHIB’s price peaked at $0.0000095 on November 11, which was the highest price level in the past two months.
The leading meme token has since fallen 10%, exchanging hands at $0.00000867 at the time of writing, according to data from CoinMarketCap.
Although the price of the token has undergone a slight correction, the bulls continue to maintain control over the spot market.
A review of the Directional Movement Index indicator on a 24-hour chart showed the positive directional index (green) resting firmly above the negative directional index (red).
When an asset’s DMI is positioned in this way, it indicates that the trend is strong and upward. This means that the price is more likely to continue its uptrend until a major shift in sentiment occurs.
Although there was some profit taking this past weekend, day traders continue to accumulate SHIB tokens. The major momentum indicators remained above their neutral lines at the time of writing. SHIB’s Relative Strength Index (RSI) stood at 61.62, while the Money Flow Index (MFI) stood at 62.44.
These values showed that buying activity continues to outpace token distribution in SHIB’s spot market.
Read Shiba Inus [SHIB] Price prediction 2023-24
However, the token’s Chaikin Money Flow (CMF) has started a decline. This indicated a steady decline in liquidity flow in the SHIB market. This is due to the profit-taking activity that is starting to gain momentum.
At the time of writing, SHIB’s CMF was above the zero line at 0.15, indicating that there is still some strength in the market. Should this indicator move below the zero line into negative territory, SHIB’s price could suffer a serious decline.
Source: SHIB/USDT on TradingView