Shibarium, Shiba Inu’s highly anticipated layer-2 network is back online but remains under the radar, confined to an extensive private testing phase. This has been revealed by Shytoshi Kusama, the lead developer of the project update on Saturday. In his comments, Kusama assured the community that they have solved all the technical challenges they previously encountered on this layer-2 platform.
Kusama said, “Shibarium is currently live (but in private mode) and producing blocks as normal.” He further emphasized the importance of ensuring optimal scalability and functionality before a public re-release, suggesting that the SHIB development team is prioritizing caution above all else.
The first launch of Shibarium in particular was not without problems. Block production had ground to a halt on the network last week. Shibariumscan, the network’s designated explorer, indicates that the most recent block on the Shibarium mainnet was produced on Thursday.
However, of the many challenges we faced, the most significant was the unexpected capture of 965 ETH, worth approximately $1.7 million in that period. The predicament arose due to the massive, unexpected influx of traffic on the network right after launch, with 1,000 ETH tokens and 600,000 BONE tokens in the first 15 minutes alone. This rush resulted in Shibarium absorbing more than 160 million units of account in just half an hour.
Kusama, giving a silver lining, stated that they have since increased Shibarium’s scale and capacity by as much as 1500%. With such promising progress and the dedication of the team, many Shiba Inu enthusiasts eagerly await Shibarium to open its gates to the public.
How high can Shiba Inu rise after Shibarium reboot?
The ripples of the Shibarium launch and subsequent hiccups are vividly visible in SHIB’s recent price dynamics. A wave of euphoria was observed around August 12, as the price of SHIB rose to a 4-month high of $0.00001134. However, after the temporary freeze of the Shibarium, the value of SHIB fell sharply. This drop was so drastic that the price of SHIB fell below the support levels of all major daily moving averages.
The meme coin’s recent trajectory saw it slip dangerously close to the 78.6% Fibonacci retracement mark at $0.00000717 last Thursday. However, SHIB price managed to pull back and found support above the 61.8% Fibonacci retracement level pegged at $0.00000806. There was a brief rebound, but resistance at the 50% Fibonacci retracement level and the 100-day EMA at $0.00000869 thwarted progress, pushing it back to the 61.8% level.
With the possible public reboot of Shibarium on the horizon, there is a beacon of hope for the price of SHIB. A successful relaunch could send SHIB up 37% and retouch its 4-month high at $0.00001134. But this climb will not be without challenges.
The Shiba Inu price will have to navigate a maze of resistance, specifically the area between the 100-day EMA at $0.00000867 and the 50% Fibonacci retracement level at $0.00000869, the area between the 200-day EMA at $0.00000932 and the 38.2% Fibonacci retracement level at $0.00000931 and the 23.6% Fibonacci retracement level at $0.00001009.
Featured image from Coins.ph, chart from TradingView.com
