The altcoin market has been following the major cryptocurrencies in their recent rally. Shiba Inu (SHIB) is one such token that has maintained a strong performance over the past week.
According to CoinGecko, SHIB is up 19.5% on the weekly period and more than 47% on the monthly at the time of writing. This strong growth is driven by external factors along with the upcoming release of Shibarium, the ecosystem update that would bring a list of features to the ShibArmy.
Who released the dogs?
Shytoshi Kusama, the pseudonymous lead developer of the Shiba Inu meme coin, has been constantly teasing the release of Shibarium since the beginning of the year. The next release of the update caused the price to go up.
While the Shiba Inu community is excitedly anticipating the beta release of Shibarium, Kusama is promoting the idea that the release of the Layer 2 scaling solution may be closer than previously thought.
SHIB’s lead developer tweeted a link to the official Shibarium Telegram handle and instructed fellow SHIB developer Trophias to “open the chat.”
the shibary the upgrade would take advantage of the security of the Ethereum network while scaling the Shiba Inu’s ability to handle transactions. This would significantly reduce fees and make the network faster and more efficient.
Image: TrackShiba.com
It would also offer utility as the upgrade would mean more SHIB tokens being burned. As of January 21, the total number of SHIBs burned exceeds 410 billion, according to the SHIB burn tracker, TrackShiba.
With the beta release From the network update that is used as an introduction to the features that Shibarium will have, the price of SHIB is expected to continue to increase in the coming days.
SHIB’s next target should be this level
The current price movement of the token is the result of reaching the resistance of $0.00001293. At time of writing, SHIB may be in some pain in the short term as resistance proves difficult for SHIB bulls. In the coming days, the bears could test the token’s current support at $0.00001184.
If the bears were ever to break this support, mid-term pain would be inevitable as the bears would have access to the $0.00000968 support which, if broken, would send the token back to pre-2023 price levels.
Investors and trades should target resistance at $0.00001293 after consolidating above $0.00001184. This would ease any downward pressure on the token, giving the SHIB bulls legroom for an explosive upward move.
SHIB total market cap at $6.6 billion on the weekend chart | Chart: TradingView.com
For now, investors and traders should focus on consolidating to continue the current rally. With the high correlation of Shiba Inu with Bitcoin, the price movement of the king coin would also cause ripples with the price movement of SHIB.
How Bitcoin will move should also be monitored, as any movement of BTC would be reflected in the SHIB price.
Featured Image: Coinpedia
