The altcoin market has followed the major cryptocurrencies in a recent rally. Shiba Inu (SHIB) is one of the tokens that maintained a solid performance last week.
according to CoinGecko, SHIB is up 19.5% on a weekly basis and over 47% on a monthly basis at the time of writing. This strong growth is supported by external factors along with the imminent launch of Shibarium, an ecosystem upgrade that will bring a list of features to ShibArmy.
Who let out the dog?
Shytoshi Kusama, the pseudonymous developer of the Shiba Inu meme coin, has been constantly teasing the release of Shibarium since the beginning of the year. The imminent launch of the upgrade causes prices to rise.
As the Shiba Inu community excitedly anticipates the Shibarium beta release, Kusama promotes the notion that the release of a Layer 2 scale solution may be closer than previously believed.
The main developer for SHIB tweeted a link to the official Shibarium Telegram handle and ordered fellow SHIB developers Trophias to “open the conversation.”
In Shibarium The upgrade will affect the security of the Ethereum network while scaling Shiba Inu’s ability to handle transactions. This will significantly reduce costs while making the network faster and more efficient.
Image: TrackShiba.com
This will also give you utility as the upgrade means more SHIB tokens are burned. As of January 21, the total SHIB burned is over 410 trillion, according to the SHIB burn tracker, Track Shiba.
with beta launch from the network upgrade 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 current token price movement is the result of resistance $0.00001293. At the time of writing, SHIB may be in short-term pain as the resistance is very difficult for SHIB cows. In the coming days, bears may be able to test the token’s current support at $0.00001184.
If the bears ever break through this support, pain in the medium term is inevitable as the bears will have access to the $0.00000968 support which, if broken, will make the token return to the pre-2023 price level.
Investors and traders should target resistance at $0.00001293 after consolidating above $0.00001184. This will reduce the downward pressure on the token, giving SHIB bulls legroom for explosive upward movement.
SHIB total market cap at $6.6 billion on the weekend chart | Chart: TradingView.com
For now, investors and traders should focus on consolidation to continue the current rally. With Shiba Inu’s high correlation with Bitcoin, the king coin’s price movement will also cause ripples with SHIB’s price movement.
Monitoring how Bitcoin will move should also be done as any movement by BTC will reflect in SHIB’s price.
Featured image: Coinpedia