As Bitcoin hovers around $29.5K in a prolonged consolidation, the spotlight shifts to meme coins, with Shiba Inu taking the lead. Despite a recent sharp drop after the impressive rally, SHIB’s analysis remains promising. With the SHIB community getting excited about the upcoming Shibarium launch and other developments, the coin seems poised for another potential bullish rise from a critical support level.
Shiba Inu gets a big boost from this development
The upcoming release of Shibarium, a layer 2 blockchain enhancement for Shiba Inu’s platform, could be the catalyst that propels SHIB to the $0.01 mark. Shibarium promises to simplify transactions with SHIB-related tokens and provide a nexus for developers to jump-start their projects. With Shibarium’s enhanced features and its new combustion mechanism, SHIB’s journey to $0.01 seems even more achievable.
Additionally, in today’s blog post, Shiba Inu introduced Self-Sovereign Identity (SSI) to Shibarium, a movement generating enthusiasm within the community. Shytoshi Kusama, the leader of Shiba Inu, elaborated on the potential of this integration in the post.
Kusama underlined the tremendous potential in merging Shibarium’s cost efficiency and the advanced technologies developed by the SHIB community for this L2 solution with Shib SSI. “The horizons of what is possible seem limitless,” Kusama noted in his post.
Creating new use cases for Shiba Inu has the potential to significantly increase its value. By expanding its applicability to transactions with leading retailers, deploying assets for rewards, social media tips and more, SHIB may reach new resistance this month.
According to data from Coinglass, both buyers and sellers have heavily liquidated their positions over the past 24 hours. The total liquidation surpassed $1.5 million after the price plummeted from its high of $0.0000098.
What’s next for the SHIB price?
After successfully surpassing and holding multiple resistance levels, the price of SHIB fell sharply from the high of $0.00001052. This suggests that SHIB’s price failed to build enough buying pressure near this level, paving the way for sellers to increase their dominance.
Momentum has recently increased, pushing SHIB price below the EMA20 trendline. This decline pushed the RSI below the midline, which is currently trading around the 47 level.
The current rejections below the immediate support line indicate that traders are holding their positions, likely in anticipation of another price hike. If the value reaches $0.00001 again, the price could rise to $0.00001175 and possibly even to $0.000014 after that.
The four-hour chart shows bullish attempts to avoid a decline below USD 0.0000085. A robust recovery from here on out could motivate the bulls to target the $0.00001 mark.
Conversely, if the value drops further and undercuts the support line, it could indicate profit taking by traders. A drop below the 61.8% Fibonacci retracement could set the stage for a drop to $0.000008.