This week, Shiba Inu (SHIB) surges beyond $0.0000115, increasing by over 40 percent

This week's rise in larger cryptocurrency markets in the aftermath of recent steep drops and as mounting US recession bets allay concerns about US Federal Reserve hawkishness has enabled a jump in Shiba Inu. According to CoinMarketCap statistics, the second most popular dog-inspired memecoin and self-proclaimed "Dogecoin killer" is up more than 13 percent in the previous 24 hours, making it the best performing cryptocurrency in the top 20 and deserving of the title of coin of the day.

SHIB/USD is now trading just north of $0.0000115, up over 41 percent on the week and up more than 60 percent from previous monthly lows just above $0.000007 per token, giving it a market valuation just north of $6.3 billion, the thirteenth-largest of all cryptocurrencies. This week, Shiba Inu has risen above both its 21-Day Moving Average (at $0.0000095) and its 50-Day Moving Average (at $0.0000112).

SHIB Dip Buying

This week represented a definite turning point in Shiba Inu's near-term technical momentum, which may imply that the retail investors that drive SHIB price action are searching for a bottom after the token dropped back into its mid-2020 levels earlier this month. According to statistics supplied by the Twitter account @letsburnshiba, the number of SHIB holders has increased from less than 1.2 million a week ago to over 2 million as of Friday. This finding is supported by this increase. According to Whalestats, the SHIB token holdings of the top 100 biggest Ethereum wallets (SHIB is an ERC-20 token) have increased to approximately $600 million.

The SHIB/USD bulls face impediments to further advance. The weekly peak, slightly around $0.0000012, lurks just above present prices. Then there are late-May peaks in the range of $0.0000125 to $0.000013. However, if the cryptocurrency can overcome these obstacles, there is little (in terms of technical resistance) preventing it from recovering all the way back to test the January lows just around $0.000017. That would represent an additional almost 50 percent increase from current levels.

Pre-Shibarium FOMO?

Despite receiving severe criticism for its lack of usefulness, Shiba Inu has a history of attracting huge speculative flows. Given SHIB's vast and devoted fans and massive social media presence, it may be hazardous to wager heavily against it.

Indeed, it does not take much to get the juices of Shiba Inu investors flowing. Some attributed this week's increase to a new proposal by the token's creators on Sunday to alter how the BONE token is utilized on the ShibaSwap platform. According to the proposal, the BONE token, the governance and utility token of the ShibaSwap platform, might be utilized in the future as transaction fees in the soon-to-be-released layer-2 Shibarium protocol.

Once deployed, SHIB tokens will transfer from the Ethereum blockchain to the Shibarium blockchain. According to developers, this will dramatically reduce gas expenses associated with SHIB transactions and offer a burn mechanism. Shibarium is anticipated to be released later in 2022, and if larger crypto market circumstances permit, Fear Of Missing Out before to its release could send SHIB soaring.