Shibarium, the long-awaited Layer-2 solution in the Shiba Inu ecosystem, may arrive soon. Shytoshi Kusama, one of the project’s leading developers, made the announcement. However, with the Shibarium announcement, SHIB price started to give bullish signals.
Highly anticipated Shiba Inu Layer-2 solution coming soon
The Shiba Inu community is looking forward to the Shibarium launch. This impatience stems from the number of benefits the new layer-2 solution can deliver. Accordingly, Shibarium will allow especially SHIB investors to make huge profits. The announcement came from a post by Shytoshi on Welly’s Discord server. There the developer confirmed that the Tier 2 solution will be available soon. He also explained that discussions about transitioning to a more active pre-release phase have already begun. Amid the veil of mystery surrounding Shibarium and the silence of the developers, even this news made fans of memecoin happy.
What will Shibarium do?
We do not know the exact details of the project at this time. But if we summarize the previous news, Shibarium is sure to increase scalability. In other words, thanks to the ability to process large volumes of transaction data in a short time, low-cost transactions will be possible. In essence, Shibarium; It will provide solutions that include faster transactions, lower gas fees and incineration mechanism. Let us remind you that Kusama announced the launch of the Shibarium Hackathon, which will accompany the release of Shibarium on his blog. The hackathon will be primarily educational. Accordingly, it will be used to inform the community about all the features of Shibarium. However, especially diligent participants will receive an award for their contribution to the development of the project.
Shiba Inu (SHIB) heading to these levels
Shiba Inu price has been stuck producing lower lows since Oct 28, 2021. Market conditions have worsened due to a series of events such as the collapse of Terra. However, SHIB is showing signs of recovery, following in Bitcoin’s footsteps. The Shiba Inu price has dropped about 66% in the last 40 days, with a 40% crash in the last two weeks. This move resulted in a pullback to a lower low of $0.0000073, which was created on May 12 at $0.0000087. The lower level may not breathe easy or recover. However, BTC’s 6.5% bounce in the last two hours indicates a potential recovery rally is taking place.
As a result, Shiba Inu’s price is up 11% since the low support formation at $0.0000073. Interestingly, the Relative Strength Index (RSI) marked higher divergence on May 12 and June 14, forming higher lows. This technical formation shows that the momentum is increasing while the market value of the asset is decreasing. Also, this pattern often signals a rally. For the Shiba Inu, investors can expect SHIB to continue this recovery rally to retest the $0.0000095 hurdle. Altogether, this move will create a 15% rise from $0.0000082.
Will SHIB rally?
An indicator that supports this recovery rally thesis for SHIB is IntoTheBlock’s Global Money In/Exit (GIOM) model. Accordingly, the immediate resistance level of the Shiba Inu price is relatively weak. This index also shows that the bulls can push the price up to $0.0000090. As cryptokoin.com reported, this level contains approximately 116,300 addresses that purchased 73.91 trillion SHIB tokens at an average price of $0.0000110. Therefore, it is possible that an increase in buying pressure could trigger an increase to $0.0000095 from a technical standpoint.
However, the Shiba Inu price is heavily dependent on the recovery of the leading cryptocurrency Bitcoin. Therefore, if BTC continues to drop, SHIB will likely do the same. In such a case, it is possible for Shiba Inu price to produce a daily candlestick below the $0.0000071 support level. Thus, the recovery thesis mentioned above will be invalidated. Accordingly, SHIB is likely to drop further and Shiba Inu price will revisit the $0.0000060 support level.
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