Advertisement
AD

Main navigation

Two Important Shiba Inu (SHIB) Factors Show That It Might Face Recovery in Upcoming Days: Details

Advertisement
Mon, 6/03/2023 - 17:00
Two Important Shiba Inu (SHIB) Factors Show That It Might Face Recovery in Upcoming Days: Details
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Contents
Advertisement

Shiba Inu (SHIB) has recently experienced a significant decline in price, but there may be signs of a potential recovery on the horizon. As the price of SHIB has fallen, the trading volume has also decreased, which may show that a price reversal is imminent. Additionally, increased network activity could lead to a positive impact on the asset.

One factor that could signal a potential turnaround for SHIB is the descending trading volume. The decreasing volume during a decline is often viewed as a bullish indicator. This is because it suggests that selling pressure is waning, and there may be fewer sellers left on the market. If the price of SHIB can stabilize and begin to rise on lower trading volume, it could indicate that the asset is ready for a recovery.

Another positive factor for SHIB is the recent increase in network activity. This increase in activity is beneficial for all parties involved with the SHIB ecosystem. With more users interacting with the network, there will be a corresponding spike in the usage of dApps related to Shiba Inu. Additionally, increased network activity will lead to a rise in burning volume, which will reduce the supply of SHIB tokens in circulation. This could ultimately lead to a higher demand for the asset and result in a price increase.

Fantom is no longer in demand

The Fantom network has been facing some challenges recently, as it has seen a decline in its total value locked (TVL) and a corresponding drop in its price. According to recent data, the network's TVL has fallen from $582 million to $454 million at press time, a decrease of almost 22%. This decline is particularly significant given that the network had seen a surge in TVL during the recent rally of Layer 2 (L2) networks and the DeFi industry.

FTM chart
Source: DeFiLIama

One of the main reasons for the decline in Fantom's TVL is likely the outflow of funds from the network, which has reflected poorly on its price. Over the past 20 days, FTM has lost almost 30% of its value, a significant drop for any cryptocurrency. While the exact reasons for this outflow are unclear, it is possible that investors are becoming more cautious about the network and its long-term prospects.

Moreover, the recent decline in TVL and price could actually be a buying opportunity for those who believe in the long-term potential of the network. Indeed, many experienced cryptocurrency investors see market downturns as a chance to accumulate assets at a discount, with the expectation of selling them at a profit once the market recovers.

Ethereum reaches key support level

Ethereum, the world's second largest cryptocurrency, has recently reached a critical support level, which is reflected in the 200-day moving average and a historical support level. This level has held up for the past few months, and it is considered to be a crucial point for Ether's price to maintain its bullish momentum.

Despite the recent dip in price, the network's burn rate has almost reached $5 million per 24 hours, which is a positive sign indicating high activity on the Ethereum blockchain.

Related
Lido Finance Now Holds 33% of All Staked Ethereum (ETH): Details

The consolidation at the key support level suggests that Ethereum is undergoing a period of price discovery, where traders and investors are reevaluating the cryptocurrency's value. This could result in increased volatility in the short term as market participants decide on the direction of the market.

The recent price performance of Ethereum has been somewhat lackluster, with the cryptocurrency losing around 10% in the last 24 hours. This decline has been attributed to the Silvergate-fueled sell-off, with many cryptocurrencies experiencing similar price drops.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD