The price of the Shiba Inu is down 33% from its December highs, but there are signs of a possible recovery.

Shiba Inu (Gray), the second-largest meme coin, rose to a high of $0.00002215, up 12% from its lowest swing this week. It lags behind other popular meme currencies like Fartcoin, ai16z, and Dogwifhat.

One possible reason for SHIB's poor performance is that the Shibarium network, its second layer network, is not performing well. While the number of transactions is approaching 800 million, total transaction fees have continued to decline. Tuesday, The collected network 640 bone fees worth less than $300

Shibarium's performance took a toll on Shiba Inu as a portion of transaction fees were used to burn SHIB tokens. according to ShipburnThe burn rate has remained under pressure in recent weeks.

Basically, the coin could see a strong comeback as cryptocurrencies rise. Bitcoin (Bitcoin) is approaching the key resistance point at $100,000 after encouragement Consumer inflation data. It also performed well before Donald Trump's inauguration and the start of his term Paul Atkins era At the Securities and Exchange Commission.

Shiba Inu coin price analysis

The daily chart shows that SHIB price formed a hammer or morning star candle as cryptocurrencies fell on Monday. This pattern, characterized by a long lower shadow and a small body, is often seen as a sign of reversal.

The Shiba Inu also formed a falling wedge chart pattern, consisting of two descending and converging trend lines. This pattern is generally considered a bullish reversal signal, with breakouts often occurring as the lines converge.

SHIB also formed a bullish divergence as the RSI formed an upward channel. Therefore, the coin may bounce back and reach last year's high of $0.000033, which is about 50% higher than the current level. A drop below the key support level at $0.00001853, the December low, would invalidate the bullish view.