SHIB pricing prepares for a 75% surge as Shiba Inu teases the debut of the L2 blockchain
Shiba Inu traders are experiencing FOMO due to the release of Shibarium, but it may not be the greatest moment to purchase SHIB.
Shiba Inu hopes to become more than a Dogecoin-inspired memecoin as its layer-2 network, Shibarium, nears its debut. In the meanwhile, the Shiba Inu token has emerged as one of 2023’s top achievers.
Year-to-date (YTD), SHIB’s price has risen about 60% to $0.00001294, its highest level since early November 2022.
The gains began to occur mostly as a result of favourable macro circumstances that inspired comparable rises in other cryptocurrency markets. Despite this, the SHIB price increased as investors evaluated the news of the upcoming beta release of Shibarium.
Shibarium is said to be a layer-2 network that would operate on top of the Ethereum blockchain mainnet. In other words, it would let developers construct and deploy decentralized apps with the goal of reducing transactional costs and enhancing network scalability.
The SHIB price has increased by 25% since January 16, when the Shiba Inu team announced the introduction of Shibarium.
According to its relative strength index (RSI), a score of almost 86 on January 18 — sixteen points over the overbought level of 70 — Shiba Inu has been excessively purchased on a daily basis due to its surge.
Ideally, an overbought RSI causes investors to liquidate their holdings, resulting in a price correction. In other words, SHIB risks falling toward its 200-day exponential moving average.
If the bullish reversal pattern on the weekly chart is to be trusted, however, SHIB’s price increase is expected to continue over the long run.
The “falling wedge” pattern occurs when the price falls inside a range outlined by two descending trendlines that converge.
It resolves when the price breaks above the top trendline toward the level that corresponds to the maximum height of the wedge.
As indicated below, SHIB has begun the breakout phase of its falling wedge pattern. It now anticipates a rise to $0.00002063 by March 2023, a 35% increase from present levels.
A possible bearish scenario would see SHIB fall short of the wedge breakout goal if the price reverses from its intermediate resistance level around the 50-day exponential moving average near $0.00001309.
Such a decline might push the price of SHIB into the wedge’s upper trendline at $0.00000800, or 40% below present levels.
