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Shiba Inu has slowed down its isolated rally after breaking above resistance at $0.00001 and climbing to new August highs at $0.00001136. The second-most prominent meme coin although down 3.6% in the last 24 hours, is up 19% over two weeks and 26% in 30 days to trade at $0.00000988.
Shiba Inu Slashes Gains Ahead of Shibarium Protocol Launch
Shibarium, an Ethereum Layer 2 solution provider protocol, aiming to address key issues in the Shiba Inu ecosystem like scalability and transaction cost, is said to be nearing completion ahead of a possible launch this week.
Shiba Inu lead developer, Shytoshi Kusama, confirmed last week that the Shibarium protocol is “nearly complete.”
The progress update came alongside the announcement of a new partner, Alpha Transform “to help shepherd this next phase of the Shiba global phenomenon.”
Shibarium is expected to elevate the SHIB ecosystem such that it can seamlessly interact with the parent chain, Ethereum (Layer 1) to process more transactions off-chain at significantly lower fees before they are added to the primary chain later.
Ethereum continues to grapple with high transaction fees and network congestion – two issues that Shiba Inu developers desire to solve with the release of Shibarium whose testnet saw “over 21 million wallets and over 250,000 smart contracts written,” Alpha Transform Chief Investment Officer, Enzo Villan said.
Shibarium would increase the SHIB token utility as it has the potential to impact the mainstream adoption of crypto and blockchain technology.
The launch event, which is expected to launch on August 16 at the Blockchain Futurist Conference, could trigger a price rally. However, the exact details of the launch have remained fuzzy.
Soon becomes tomorrow#SHIBARMY pic.twitter.com/I7P1lQgC07
— Shib (@Shibtoken) August 15, 2023
Investors on the other hand, while booking positions ahead of the launch, sent Shiba Inu on a sole rally last week, which continued on Monday and Tuesday before the token rolled back below $0.00001.
“Has our day really come?! Would make it the summer to remember first XRP gets clarity and then Shibarium; ill mark this year on my calendar and celebrate it every year!” A SHIB-XRP investor said via X.
Shiba Inu Sell-Off Before Rally
SHIB is in the red despite the glaring launch of Shibarium. Overhead pressure started to increase with the rejection from the macro downtrend (upper dotted descending trendline) and has tested support provided by the 200-day Exponential Moving Average (EMA) (purple) at $0.00000939.
This retracement could be occasioned by whales selling to book profits following the rally from $0.00000716 in early July.
Despite the retracement, Shiba Inu could still rally, bolstered by a relatively positive outlook marked by the 50-day EMA (red) crossing above the 50-day EMA (red) and forming a golden cross.
The launch of Shibarium coupled with a 94% spike or 222,200,451 SHIB token burn rate, could be the factors that trigger the next rally above $0.00001 to $0.00002.
The token burn program was implemented to address the high supply of tokens in the ecosystem so that Shiba Inu can eventually push higher to create value for its ardent enthusiasts.
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