Here's why the Shiba Inu price is skyrocketing

Shiba Inu made a strong comeback on September 26th, reaching its highest level since July 27th as Shibarium fees skyrocketed.

Shibarium fees are increasing

Shiba Inu (SHIB), the second largest meme coin, jumped to $0.000017 as on-chain data showed Shibarium fees rose to 438, well above the monthly low of 27, marking an increase of corresponds to 1,522%.

Shibarium is a Layer 2 network launched by the developers of Shiba Inu. A sharp increase in fees suggests that the network is seeing more activity. In fact, data from Shibariumscan shows that the number of new transactions rose to 8,025 on September 26 from its monthly low of 2,186.

Higher Shibarium fees are also significant, as part of the BONE revenue collected is converted into SHIB and then burned. Data from Shibburn shows that Shiba Inu’s burn rate increased by 640% to 5,555,360 tokens in the last 24 hours.

Shiba Inu’s rise also coincided with the meme coin’s ongoing rally. Most meme coins are up over 5% in the last 24 hours, pushing the total market cap to $50.9 billion. Pepe (PEPE) rose 7.5% while Mog Coin gained 14%.

Popcat (POPCAT) is also up 15% in the last seven days, pushing its market cap to over $1 billion. Meme coins often have some degree of correlation.

Additional data from Nansen shows that Shiba Inu experienced a net outflow of 41 million tokens over the past seven days. As a result, the total supply of tokens on exchanges has increased to 25.48%. Token outflow is a bullish indicator that suggests many investors are storing their coins in personal wallets.

Shiba Inu exceeded the key resistance

Shiba Inu’s rise was also fueled by positive technical indicators. It formed a double bottom chart pattern and moved above the neck line at $0.000016, its highest swing on August 24th.

SHIB also rose above the descending trend line that connects the highest fluctuations since July 16. Additionally, the Relative Strength Index continued to rise, indicating that momentum is building.

This price action suggests that the token will continue to rise as bulls target key resistance at $0.00002, the highest level in July.