The altcoin market has been following the major cryptocurrencies in their recent rally. Shiba Inu (SHIB) is one of those tokens that maintained a solid performance in the last week.
According to CoinGecko, SHIB is up 19.5% in the weekly timeframe and over 47% in the monthly at the time of writing. This strong growth is fueled by external factors along with the nearing launch of Shibarium, the ecosystem’s upgrade that would bring a list of features for the ShibArmy.
Who Let The Dogs Out?
Shytoshi Kusama, the pseudonymous chief developer of the Shiba Inu meme coin, has been constantly teasing the release of Shibarium since the start of the year. The nearing launch of the upgrade led the price to climb.
As the Shiba Inu community excitedly anticipates the beta release of Shibarium, Kusama is promoting the notion that the release of the Layer 2 scaling solution may be closer than previously believed.
The primary developer for SHIB tweeted a link to the official Shibarium Telegram handle and instructed fellow SHIB developer Trophias to “open the chat.”
The Shibarium upgrade would leverage the Ethereum network’s security while scaling Shiba Inu’s ability to handle transactions. This would lower fees significantly while making the network faster and more efficient.
It would also offer utility as the upgrade would mean more SHIB tokens burnt. As of January 21st, the total burned SHIB is over 410 trillion, according to SHIB burn tracker, TrackShiba.
With the beta launch of the network upgrade being used as an introduction to the features Shibarium will have, SHIB is expected to continue to soar in price in the next few days.
SHIB’s Next Target Should Be This Level
The token’s current price movement is a result of hitting the $0.00001293 resistance. As of writing, SHIB may be in some short term pain as the resistance proves itself difficult for SHIB bulls. In the coming days, bears might be able to test the token’s current support at $0.00001184.
If the bears ever broke through this support, pain in the medium term would be inevitable as bears would have access to the $0.00000968 support which, if broken, would make the token revert to pre-2023 price levels.
Investors and trades should target the $0.00001293 resistance after consolidating above $0.00001184. This would alleviate any downward pressure on the token, giving SHIB bulls legroom for an explosive upward movement.
SHIB total market cap at $6.6 billion on the weekend chart | Chart: TradingView.com
For now, investors and traders should be focused on consolidating for a continuation of the current rally. With the high correlation of Shiba Inu with Bitcoin, the king coin’s price movement would also cause ripples with SHIB’s price movement.
Monitoring how Bitcoin will move should also be done as any movement by BTC would reflect in SHIB’s price.
Featured image: Coinpedia