Shiba Inu hopes to become more than just a Dogecoin-inspired meme cryptocurrency as the launch of his layer 2 network called shibario. Meanwhile, the shib token has become one of the best so far in 2023.
SHIB price rises 60% in 2023
SHIB's price is up nearly 60% year-to-date (YTD) to $0.00001294, its highest level since early November 2022.
Gains started to appear mainly due to favorable macro conditions that triggered similar rallies in other parts of the crypto market. However, the Shiba Inu price rally gained momentum as investors weighed in on his announcement of the upcoming beta version of shibary.
Shibarium is reportedly a Layer 2 network that would run on top of the Ethereum Blockchain Mainnet. In other words, it would allow developers to create and launch decentralized applications (dapps) while aiming for lower transactional costs and improved network scalability.
The Shiba Inu price is up 25% since January 16, when the Shiba Inu team teased their audience with the announcement of the Shibarium launch.
Introduction to Shibarium: Shiba Inu Layer 2 Network โ Rejoice #ShibArmy! Shibarium Beta is about to be released, and through this article we want to introduce some basics to bring clarity to the community.
Read more: https://t.co/xWyPaVlQQ4
โ Shib (@Shibtoken) January 15, 2023
Shiba Inu Price: Another 75% Boom Ahead?
The Shiba Inu's rally has made it an overbought asset on a daily time frame, according to its Relative Strength Index (RSI) reading at nearly 86 on Jan. 18, sixteen points above the threshold for overbought 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 (200-week EMA; the blue wave) near $0.00001120.
However, in the longer term, the SHIB price rally is likely to continue, if the bullish reversal pattern on the weekly chart is to be believed.
Nicknamed the "falling wedge", the pattern develops when the price tends to fall within a range defined by two descending and converging trend lines.
It is resolved after the price breaks above the upper trend line towards the level by 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 rise towards $0.00002063 by March 2023, 35% higher than current price levels.
Alternatively, a potential bearish case scenario would see SHIB miss the breakout target of the wedge if price reverses from its interim resistance level at the 50-week EMA (the red wave) near $0.00001309.
Such a drop could send the Shiba Inu price towards the upper trend line of the wedge near $0.00000800, or 40% below current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
Post navigation
