The Shiba Inu ecosystem’s Layer 2 chain, Shibarium, has achieved a significant milestone, reaching its highest number of contracts deployed in three months. This surge in developer activity on Shibarium, an Ethereum scaling solution, is fueling optimism among investors and positioning SHIB for potential gains. With on-chain metrics supporting a bullish outlook, the meme coin could be on track to extend its upward momentum.
Shibarium Records Three-Month High in Contract Deployments
Shibarium, the Ethereum Layer 2 scaling solution within the Shiba Inu ecosystem, has recorded a notable uptick in developer activity, hitting a three-month high in the number of contracts deployed. As of September 5, 34 contracts were deployed on the platform, slightly trailing July’s 36 but still marking a significant increase in engagement from developers and projects. This milestone comes on the heels of Shiba Inu’s recent launch of a developer toolkit aimed at encouraging more projects to build on Shibarium, reflecting growing confidence among developers and users alike.
Lucie, a Shiba Inu marketing executive, highlighted this achievement in a recent tweet, underscoring the community’s enthusiasm and the increasing momentum behind Shibarium’s development. The rising number of contracts indicates a broader trend of increasing activity and adoption within the Shiba Inu ecosystem, which could positively impact SHIB’s price trajectory.
On-Chain Metrics Signal Bullish Outlook for SHIB
Shiba Inu’s on-chain metrics are aligning with a bullish thesis for the meme coin. The Market Value to Realized Value (MVRV) ratio on a 30-day timeframe currently stands at -2.067%, suggesting that SHIB is undervalued in the market. This metric, which compares the market value of an asset to its realized value, indicates that SHIB is trading below its fair value, providing a potential buying opportunity for investors.
Moreover, SHIB traders have consistently realized losses over the past 30 days, as shown by the Network Realized Profit/Loss (NPL) metric, which measures the net profit or loss of all assets sold on a given day. The consistent negative spikes in NPL since July 2024 point to a trend of capitulation among SHIB holders—a scenario where investors liquidate their positions, leading to significant realized losses. Historically, such capitulation phases are often followed by a recovery in price, setting the stage for a potential rebound in SHIB.
Technical Indicators Point to Further Gains for SHIB
Despite a multi-month downward trend that began in March 2024, SHIB has shown signs of recovery, rebounding from the August 5 low of $0.00001078 to $0.00001336 at the time of writing. Technical indicators support the bullish outlook, suggesting that SHIB could extend its gains in the near term.
The Moving Average Convergence Divergence (MACD) indicator is currently showing green histogram bars above the neutral line, signaling positive momentum in SHIB’s price trend. Additionally, the Relative Strength Index (RSI) reads 45, just below the neutral level of 50, indicating that there is room for further upward movement without entering overbought territory.
Based on these indicators, SHIB could rally by approximately 13.5%, targeting the key resistance level of $0.00001525, which also marks the August 26 high. Breaking above this level could further reinforce the bullish momentum, potentially setting SHIB on a path to recover more of its previous losses.
Potential Risks and Support Levels
While the outlook for SHIB is positive, investors should remain cautious of potential corrections. In the event of a pullback, Shiba Inu is likely to find support at the August 5 low of $0.00001078. This level has previously acted as a strong support zone and could provide a buffer against further declines, helping to maintain the overall bullish structure.
Conclusion
The Shiba Inu ecosystem continues to gain traction with Shibarium’s increasing developer activity and the promising on-chain metrics. As SHIB eyes a potential 14% gain, the community remains optimistic about the coin’s ability to reach its targets and break out of the recent downtrend. With the Layer 2 scaling solution expanding and SHIB’s technical indicators aligning, the meme coin could be on the verge of a significant rally, offering a compelling opportunity for traders and investors alike.
