Shiba Inu teases the introduction of L2 blockchain as SHIB pricing prepares for a 75% increase
While its layer-2 network, called Shibarium, is about to go live, Shiba Inu prepares to go beyond being just another meme cryptocurrency like Dogecoin. In the meantime, one of 2023’s top performers so far has been the SHIB token.
SHIB price increases by 60% in 2023.
The price of SHIB has increased by almost 60% so far this year (YTD) to $0.00001294, its highest level since early November 2022.
Favorable macroeconomic factors that sparked comparable rallies elsewhere in the crypto market were a major factor in the gains beginning to show. But, when investors evaluated its news of the impending beta release of Shibarium, the Shiba Inu price surge gained traction.
Shibarium is said to be a layer-2 network that would be built on top of the mainnet of the Ethereum blockchain. In other words, it would make it possible for programmers to create and distribute decentralized applications (dapps) with a focus on reducing transaction costs and enhancing network scalability.
Since the Shiba Inu team teased its audience with the Shibarium launch announcement on January 16, the price of the Shiba Inu has increased by 25%.
Shiba Inu Price: Are we to see another 75% boom?
Shiba Inu’s relative strength index (RSI), which read almost 86 on January 18 — sixteen points over the overbought level of 70 — indicates that the asset has been unduly acquired on a daily basis as a result of the recent advance.
An overbought RSI should encourage investors to liquidate their positions, which will eventually cause a price correction. In other words, SHIB runs the risk of falling toward the $0.00001120 area of its 200-week exponential moving average (200-day EMA; the blue wave).
But, if the bullish reversal pattern on the weekly chart is to be trusted, the price rally in SHIB is expected to continue over the long run.
As the price moves downward inside a range established by two descending, convergent trendlines, a pattern known as the “falling wedge” emerges.
It ends when the price crosses above the upper trendline and moves in the direction of the level with a length equal to the height of the wedge.
As indicated below, SHIB has started to break out of its falling wedge formation. By March 2023, it now anticipates an extended upside toward $0.00002063, up 35% from the current price levels.
Alternatively, if price reverses from its temporary resistance level at the 50-week EMA (the red wave) near $0.00001309, a potential bearish scenario would see SHIB falling short of the wedge breakthrough target.
The Shiba Inu price would be at risk of falling 40% from present price levels, or toward the wedge’s upper trendline near $0.00000800.
There are no recommendations or investment advice in this post. Every trading and investment decision carries risk, so readers should do their own research before choosing.
