SHIB price prepares for 75% boom as Shiba Inu teases L2 blockchain launch
Shiba Inu is hoping to become more than just a Dogecoin (DOGE)-inspired memecoin as it nears the launch of its layer-2 network called Shibarium. Meanwhile, the Shiba Inu (SHIB) token has emerged as one of the best performers so far in 2023.
The SHIB price jumps by 60% in 2023
SHIB’s price is up nearly 60% year-to-date (YTD) to $0.00001294, the highest since early November 2022.
The gains started to show mainly due to favorable macro conditions that led to similar rallies elsewhere in the crypto market. Nevertheless, the SHIB price rally gained momentum as investors considered the announcement of the upcoming beta release of Shibarium.
Shibarium is reportedly a layer-2 network that will run on top of the Ethereum blockchain network. In other words, it will enable developers to build and launch decentralized applications while aiming for lower transaction costs and improved network scalability.
The SHIB price has risen 25% since January 16, when the Shiba Inu team teased its audience with the Shibarium launch announcement.
Introduction to Shibarium: Shiba Inus Layer 2 Network — Enjoy #ShibArmy! Shibarium Beta is about to be launched and through this article we want to introduce some basic concepts to provide clarity to the community.
Read more: https://t.co/xWyPaVlQQ4
— Shib (@Shibtoken) 15 January 2023
Shiba Inu Price: Another 75% Boom Ahead?
Shiba Inu’s rally has made it an overbought asset on a daily time frame, according to its relative strength index (RSI) of nearly 86 on January 18 – sixteen points above the overbought level of 70.
Related: What is ShibaSwap and how does it work?
Ideally, an overbought RSI prompts investors to unload their positions, leading to a price correction. In other words, SHIB risks falling towards its 200-day exponential moving average, represented by the blue line in the chart below, near $0.00001120.
However, on a long-term basis, SHIB’s price rally is likely to continue if the bullish reversal pattern on the weekly chart is to be believed.
Called “the falling wedge,” the pattern develops when price trends fall within an area defined by two descending, converging trend lines.
It resolves after the price breaks above the upper trend line towards the level for a length equal to the maximum height of the wedge.
SHIB has entered the breakout stage of its falling wedge pattern, as shown below. It now sees an extended upside towards $0.00002063 by March 2023, up 35% from today’s price level.
Alternatively, a potential bearish scenario would see SHIB fall below the wedge breakout target if the price reverses from its temporary resistance level at the 50-day exponential moving average (red line) near $0.00001309.
Such a decline would risk sending SHIB’s price towards the wedge’s upper trendline near $0.00000800, or down 40% from today’s price level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
